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VAR QUISITIVE TO BUY BANKCARD USA Featured

Dynamics reseller Quisitive Technology Solutions is pushing hard into the payments business with an agreement to acquire BankCard USA Merchant Services. The deal has a value of about $166 million.

On the heels of its purchase of a healthcare business, Quisitive, which is based in Toronto, Ont., will pay $100 million in cash and 50 million in stock shares. Trading yesterday closed at roughly $1.33 per share. BankCard had revenue of $29 million and EBIDTA of $11 million for the 12 months ended September 30. The transaction is expected to close in the June quarter.  The Mazik deal, which is expected to close this week, had value of about $15 million. Obviously, Quisitive CEO Mike Reinhart has been busy. These deals come after Quisitive dramatically expanded its business last year with the purchase of the former Menlo Technologies. Quisitive’s announcement said the BankCard purchase “will serve as a growth catalyst for Quisitive’s LedgerPay payment processing and payments intelligence platform.” The BankCard purchase has an earn-out is a maximum of $20 million payable in cash and stock. Quisitive has not yet reported 2020 revenue, but had revenue of $36.7 million for the nine months ended September 30. Mazik had revenue of roughly $10.4 million for the twelve months ended December 31. Quisitive reported revenue of $18.5 million for 2019, so 2020 will be well beyond that. Quisitive has been actively raising capital having recently closed a private placement of approximately $15.9 million. Moreover, Quisitive has a deal with a syndicate of underwriters will purchase 33,400,000 subscription receipts on a “bought deal” basis for $1.50 Canadian per receipt. The proceeds are expected to be nearly $40 million, U.S. An exercise of the over-allotment option would about around $6.1 million. This funding is expected to close by April 8. It is also increasing its existing term loan by $50 million to purchase part of the BankCard deal.

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