Blackboard Inc. agreed to buy education payment services provider Higher One Holdings Inc. (NYSE: ONE) for $260 million in cash. The purchase price represents a 37.3 percent premium over Higher One’s June 29 stock price of $3.75.

Higher One is known for the CashNet software program that is designed to automate payments, allows students and parents to electronically pay tuition, and setup customized payment plans. The target serves more than 700 campuses. Higher One acquired CashNet in 2009. “Providing students and parents with a comprehensive set of tools that assist them in managing tuition payments is a critical piece of the access equation,” says Blackboard senior vice president David Marr.

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