The acquisition of Payix is expected to strengthen Repay’s position in the automotive loan repayment market and supports its expansion in the BNPL market
Integrated payments technology company Repay Holdings has acquired Payix in a deal worth up to $115m, on a cash-free, debt-free basis.
The company has made an upfront payment of $95m at closing and is expected to pay the remaining amount of up to $20m through an earn-out, based on Payix’ performance in 2022.
Payix is expected to generate more than $15m in revenue for 2022, with gross and adjusted EBITDA margins of around 65% and 40%, respectively.
Repay said that the transaction would strengthen its position in the automotive loan repayment market and support its expansion into the buy now, pay later (BNPL) market.
The company has financed the transaction using cash available on its balance sheet, and revolver capacity.
Also, it has announced the increase in its revolver capacity by $60m, from the existing $125m Revolving Credit Facility to reach $185m.
Repay CEO John Morris said: “We are thrilled about the acquisition of Payix, a highly complementary business to Repay.
“With its robust and highly flexible technology platform, Payix creates a uniquely positive experience and adds value for both the lender and borrower.
“Payix also has a strong pipeline and product roadmap, positioning it well for 2022 and beyond. We look forward to welcoming the Payix team into the REPAY family.”
Established in 2016, Payix is an omnichannel payment technology platform engaged in helping lenders and loan servicers to engage with borrowers and collect payments.
The company provides payments, data exchange, and communication solutions to support customer service and collection efforts in the loan repayment market.
Its software is said to support a wide range of payment options and provides a SaaS approach to loan collections by integrating with loan management systems (LMS) and dealer management systems (DMS).
Repay said that Payix’ sales distribution model, driven by integrations with LMS and DMS platforms would support its new merchant acquisition.
Troutman Pepper acted as legal advisor to Repay on the transaction, while Capstone Partners acted as exclusive financial advisor and Gunderson Dettmer served as legal advisor to Payix.