Transactions
September 2016
Salt Lake City, Utah
has been acquired by
Chicago, IL
Background
iTransact Group, LLC is a Salt Lake City-based provider of online, mobile and traditional payment processing solutions and technology for micro, small and medium-sized merchants. The company has a powerful network of “Trusted Advisors” (CPAs, tax preparers, and financial advisors) that enables iTransact to serve difficult to reach, small and medium-sized merchants. Further, iTransact had embarked on a buildout of its next generation integrated mobile offering.
iTransact’s proprietary payment technology suite includes an integrated Payment Facilitator platform (“Payfac”); a specialized eCommerce gateway; and a mobile payments solution (“mPOS”). The company also partners with best-in-class payment processors, such as Vantiv, First Data, iPayment and PowerPay.
Over the years, iTransact had received several approaches by payment processors and other Independent Sales Organizations (“ISOs”) interested in acquiring the company. In 2015, management and the company’s board of directors asked Marlin & Associates to help the firm develop and evaluate strategic alternatives as its exclusive strategic and financial advisor.
M&A worked diligently with iTransact’s management team to craft materials that communicated the unique characteristics of the company, its technology, products and market opportunity – and then to convey that story to a carefully curated set of potential financial and strategic partners. Payroc, also a Vantiv ISO, was familiar with iTransact and became intrigued by the depth, breadth and potential growth of the company’s Trusted Advisor program as well as the benefits that iTransact’s proprietary technology could bring to a combined organization. On September 15, 2016, management and the iTransact Board agreed to sell the company to Payroc LLC. The financial terms of the transaction were not disclosed.
Marlin & Associates dove deep into iTransact’s financial records, product material, sales practices, and merchant information in an effort to better understand and help management to clearly communicate the company’s strengths and capabilities. With that background, Marlin & Associates assisted iTransact’s management in the crafting of materials to support strategic discussions, identified potential partners, assisted in negotiating transaction terms, advised on the due diligence review process and acted as the exclusive strategic and financial advisor to iTransact.
Stephen Hall, iTransact Managing Partner and CEO, said: "The Marlin & Associates team was a highly valued player in completing our transaction. Their professional expertise and commitment to the process, preparation, positioning, presentation, and leadership got us to the finish line. They’re smart, available whenever needed, and bring the work ethic to get the deal done.”