Clearent, a full-service, integrated payment services provider based in the United States and Transaction Services Group, a global provider of business management software and integrated payments for the subscription economy, have entered into a definitive merger agreement. TSG and Clearent, both portfolio companies of Advent International, a private equity firms and a investor in payments technology, are combining to create a global platform designed to integrate software, payments, and commerce-enabling services for specific vertical markets. The new company will be called Xplor.
Xplor will be headquartered in the United States in Atlanta, GA. Clearent CEO Pamela Joseph will serve as executive chair of the new company and TSG CEO Floris de Kort will serve as group CEO.
“This is a highly complementary combination of applications and platforms that are well positioned to empower businesses that operate in ‘everyday life’ verticals, which are growing rapidly because they are so important to consumers around the world,” said de Kort. “This transaction will enable us to better leverage the advantages of our global breadth with our hyper-local expertise. We will invest in and commercialize our product innovations more effectively, such as our suite of mobile apps, so that we can continue to help our clients eliminate friction and deliver better experiences to their consumers and small businesses.”
“Our cloud-based, technology platform allows clients and partners to ‘plug and play‘ easily into our suite of software and payments solutions, speeding their time to market and helping them navigate the operational pain points that too often hold businesses back,” said Joseph. “With intimate knowledge of building companies from the ground up, we have a passion for offering a personal and high-quality customer service approach that is lacking in the market today.”
Macquarie Capital served as financial advisors to TSG on the transaction. Citi served as financial advisors to Clearent. Proton Partners served as strategic advisor to Advent International and Xplor, and Goldman Sachs and UBS advised on the financing of the transaction.