When it comes to a payments model worth investing in, the payment facilitator model has more than established itself as a worthy contender in the global marketplace. Most recently, private equity firm Great Hill Partners has made an all-cash offer to acquire PF VersaPay Corporation.
“We are very pleased to be able to recommend this transaction to our shareholders, employees and customers,” said VersaPay Chairman Art Mesher in the press release. “With their deep knowledge of our industry and focus on supporting growth companies, Great Hill is uniquely positioned to understand our business and its long-term potential, and help [VersaPay] achieve that potential”.
In light of the recent agreement, VersaPay’s total equity will now be valued at approximately $126 million on a fully diluted basis.
“Great Hill is excited to partner with the VersaPay team and provide the capital to execute on their growth strategies” stated Matt Vettel, Managing Partner at Great Hill Partners, in the same release.
As for what’s driving the gravitational pull towards PFs when it comes to prospective investors, important factors include:
- Demand: Consumers are being conditioned to expect a seamless payments experience, forcing even smaller merchants to focus on frictionless payment acceptance.
- Opportunity: Small and medium-sized businesses in the U.S. currently lag behind their larger counterparts in accepting digital payments, so the opportunity is huge.
- Need: SMBs have fewer resources to devote to the payments experience so the fully integrated solution that PFs offer satisfies a major need in a more simple and cost-effective manner.
VersaPay is just the most recent example of the PF potential in this marketplace.