US-based credit card processing company Clearent has signed a definitive agreement to merge its operations with Transaction Services Group (TSG), which provides software and integrated payments solutions for education, health and fitness markets.
The merger of the two Advent International portfolio companies is expected to create a combined firm valuing $3bn including debt, Bloomberg reported citing sources familiar with the matter.
The combined company, to be named Xplor Technologies, will deliver software, payments and commerce-enabling solutions.
Particularly, the company will serve education, health and fitness, boutique wellness, field services and personal services industry verticals.
Overall, it will serve more than 82,000 businesses, which processed around $27bn in payments last year.
Additionally, Xplor will offer commerce-enabling solutions such as CRM and loyalty programme applications, billing and account management services, online learning and training software among others.
TSG CEO Floris de Kort said: “This is a highly complementary combination of applications and platforms that are well positioned to empower businesses that operate in ‘everyday life’ verticals, which are growing rapidly because they are so important to consumers around the world.
“This transaction will enable us to better leverage the advantages of our global breadth with our hyper-local expertise. We will invest in and commercialise our product innovations more effectively, such as our suite of mobile apps, so that we can continue to help our clients eliminate friction and deliver better experiences to their consumers and small businesses.”
Clearent CEO Pamela Joseph said: “Our cloud-based, technology platform allows clients and partners to ‘plug and play’ easily into our suite of software and payments solutions, speeding their time to market and helping them navigate the operational pain points that too often hold businesses back.
“With intimate knowledge of building companies from the ground up, we have a passion for offering a personal and high-quality customer service approach that is lacking in the market today.”
The transaction is slated to close in the second quarter of this year.
As agreed, Joseph will serve as executive chair of the new company and Kort will be the Group CEO.
Xplor will be headquartered in the US city of Atlanta and will employ around 2,000 people.