REPAY Inks Deal For B2B AP Automation Firm CPS

Vertically integrated payment provider REPAY Holdings Corporation has inked a definitive deal to buy CPS Payment Services for as much as $93 million, with a payment of $78 million at closing, according to a Tuesday (Oct. 27) announcement.

REPAY’s acquisition of CPS will be financed with cash on hand, while the transaction is anticipated to close in Q4 2020 “subject to certain customary closing conditions,” according to the announcement.

“With their expanding sales channels, proprietary payment portal, integration capabilities and growing client base, CPS will substantially enhance REPAY’s comprehensive B2B offering,” REPAY CEO John Morris said in the announcement.

Atlanta, Georgia-based CPS, which was started in 2011, is a B2B payments and accounts payable (AP) automation firm. It allows for the creation, operation and reconciliation of virtual card, check, automated clearing house (ACH) and enhanced ACH payments via an integrated software infrastructure.

CPS, which has created a unique database of more than 20,000 enhanced ACH and virtual card-accepting vendors, serves an expanding base of more than 160 enterprise customers throughout different industries.

“The rapid growth of our business combined with REPAY’s extensive resources, expanding suite of solutions and proven success in scaling operations puts us in a great position to establish a true industry powerhouse in B2B payments,” CPS President and CEO Wade Eckman said in the announcement.

The news comes as REPAY bought AP automation firm cPayPlus LLC for as much as $16 million, per news in July. REPAY said at the time that the terms encompassed $8 million in cash and $8 million in additional payments, which will be triggered if cPayPlus satisfies performance mileposts. Salt Lake City, Utah-based cPayPlus was started in 2017.

Separately, REPAY has integrated its infrastructure with the Sage 500 enterprise management system, per news in August. At the time, it was noted that REPAY is already linked to Sage 100 in addition to Sage 300.