Global Processing Services (GPS), a payments processor that works with digital and challenger banks, fintechs and financial institutions, has secured £44m investment from British private equity firm Dunedin.

The deal, which represents the third largest fintech financing in the UK this year, will offer Dunedin a “significant stake” in GPS. The precise size of the stake was not disclosed.

GPS co-founder Tony Kerr said: “The partnership with Dunedin is another important milestone for GPS and we look forward to working with them to take the next step on our exciting growth path.

“The investment will give us extra firepower to facilitate continued growth, strengthen our offering and expand our global footprint.”

The latest transaction is the third financial services deal carried out by Dunedin in the last two years, the other two deals being investments in Kingsbridge and Alpha. As part of the deal, Dunedin partners Oliver Bevan and Dougal Bennett will join the GPS board.

“We are really excited to be investing in GPS which represents a significant opportunity for Dunedin to utilise its experience in taking UK companies with a technological edge and enabling them to shine on the international stage,” Bevan stated.

GPS was founded by entrepreneurs Tony Kerr & Craig Dewar and employs 150 staff in London and Newcastle. GPS Apex, the integrated platform of GPS, powers next generation fintech payment firms. The company’s clients include Starling Bank, Revolut, Pockit, Volt Bank, Loot, Stocard, Glint, Osper and Curve.