Business development company Newtek Business Services has purchased Premier Payments, an electronic payment processor, for approximately $16.5m.
The deal is expected to boost expand Newtek’s presence in the merchant processing space, and will be accretive to earnings beginning in the third quarter of 2015.
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Premier Payments is a payment processor allowing billions of dollars of credit card and debit card transactions on an annual basis.
Newtek chairman, president and CEO Barry Sloane said: "We anticipate this acquisition will be accretive to earnings as well as help maintain our ability to grow the top and bottom line of our payment processing business by double-digit percentages.
"As part of this acquisition, we wholeheartedly welcome Jeffrey Rubin, founder of Premier Payments and one of the original co-founders of Newtek, back as a special advisor to Newtek’s Chairman. In addition, we welcome Jordan Stein, the seasoned Chief Operating Officer of Premier Payments.
"This acquisition will give us the ability to acquire Premier’s existing processing and BIN sponsor relationships with Elavon and CardConnect. As a result, we anticipate gaining approximately 2,500 new merchant accounts, and estimate Newtek’s payment processing portfolio companies will process approximately $5.5 billion in electronic payments and reach approximately 16,000 electronic payment processing clients by the end of 2015."
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