GTCR LLC is buying RevSpring Inc., a billing and customer communications service provider for businesses, and has agreed to commit up to $400 million in capital to make add-on acquisitions in the payments industries. The deal is expected to close Nov. 2016.
RevSpring’s technology serves as an online portal for companies to engage with customers, provide payment options, and allows customers to sign documents electronically. The portal also provides data insights to help businesses improve performance. RevSpring, headquartered in Wixom, Michigan, services more than 2,000 clients that represent the healthcare and financial service industries. The target was formed as a result of a merger between PSC Info Group and Dantom Systems in 2012.
GTCR is a Chicago-based private equity firm that has invested in more than 200 companies across the financial services and technology, healthcare, and technology, media and telecommunications industries. The firm has invested more than $10 billion in capital since its inception in 1980. GTCR's investments is underlined by the Leaders Strategy, a program that involves "finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth."
GTCR has been rather active with dealmaking. In 2016, the firm: has made plans to buy telecom network provider Inteliquent Inc. (Nasdaq: IQNT) for $800 million; sold an aircraft maintenance software company to The Hearst Corp.; purchased Optimal Blue, a vendor of product and pricing engineer software; created a new venture to focus on acquiring specialty companies within the pharmaceutical industry; and also made a $500 million deal to purchase Lytx, a seller of subscription-based services used to help fleet operators improve driver safety. GTCR won Mergers & Acquisitions' 2013 M&A Mid-Market Private Equity Firm of the Year award. Jefferies Group LLC, Madison Capital Funding, Newstone Capital Partners and Northwestern Mutual Life Insurance Co. Inc. all provided financing on the deal.