Universal Business Payment Solutions has embarked a definitive agreement to acquire three growing companies including Electronic Merchant Systems, Jet Pay and A D Computer Corporation for almost $179m.

The integration of all four conglomerates will enhance their footprint in electronic payment arena by enabling them as a strategy provider of end-to-end transaction processing services to small businesses.

The newly commissioned firm will have a combined scale of 23,000 small business customers across the US and a unique platform in a consolidating industry at a lower valuation than publicly-traded peers.

As per the acquisition deal, UBPS will pay $179m to the three companies, of which $104m will be paid in cash, $38m in newly issued UBPS common stock, and the balance as future payments in cash and UBPS stock.

The new startup will be led by payment processing innovator Bipin Shah, the acquirer said.

UBPS chairman and CEO Bipin Shah said that UBPS was formed based on a simple concept, which will allow small business owners to be able to receive all of their business processing solutions in one place.

"We also worked very diligently at creating a structure that was both internally friendly for these three companies while also providing current and potential investors a valuation greater than that available through investment in other publicly-traded companies in the market," Shah added.

The consolidation of the firms will take place after obtaining regulatory approval and other customary closing conditions and is expected to complete during the first week of the fourth quarter of this year.