Private equity firm Flexpoint Ford led an equity investment of up to $120 (C$150 million) in PayFacto Payments Inc., a provider of payment services and point-of-sale technologies, with participation from BMO Capital Partners.
“With its impressive track record and experience in the financial services sector, Flexpoint Ford is the ideal partner to help drive PayFacto’s growth,” said Martin Leroux, president and CEO of PayFacto. “We’re incredibly proud of everything we’ve accomplished as a Canadian company; now we’ve reached an exciting inflection point and our new financial partners will help take us to the next level in our company’s evolution. Flexpoint Ford not only has a deep knowledge of the payments sector, but they also share our values and vision for success. We’re pleased that BMO, which debt financed our two POS acquisitions, will continue to be part of our growth story, now as an equity investor.”
Arjun Thimmaya, managing director at Flexpoint Ford, commented, “We’re excited about PayFacto’s growth potential and the opportunity to further expand its presence in the U.S. by combining payment and POS technologies. PayFacto is a true Canadian success story, and we’re eager to help replicate that success in the U.S. We were particularly impressed with the depth of PayFacto’s management team—they have the experience and capabilities to make their vision a reality.”
“We look forward to working with management to accelerate PayFacto’s strong organic growth and remain focused on collaborating with the team to further the Company’s inorganic growth strategy in both payments and POS software systems,” added Vilas Nair, principal at Flexpoint Ford. “Given PayFacto’s history of acquiring and integrating companies in both markets, we believe they are well-positioned as an acquiror of choice.”
Alex Baniczky, head, BMO Capital Partners, added, “Bank of Montreal has enjoyed a longstanding partnership with PayFacto as a lender, and we’re pleased to participate in the PayFacto story as a shareholder and to work with Flexpoint Ford. We see a lot of upside potential with PayFacto as they grow their presence in the U.S.”
RBC Capital Markets served as the exclusive financial advisor and BCF served as legal counsel to PayFacto. Stikeman Elliott LLP and Kirkland & Ellis LLP served as legal counsel to Flexpoint Ford. Oliver Wyman acted as a strategic advisor to Flexpoint Ford. Miller Thomson LLP served as legal counsel to BMO Capital Partners.