CALABASAS, Calif.--(BUSINESS WIRE)--Applied Merchant Systems (AMS: www.appliedmerchant.com) continues to develop its integrated electronic payment processing platform while consolidating with other growing merchant acquirers, or independent sales organizations (“ISOs”). In that pursuit, AMS expanded its senior credit facility with Goldman Sachs Specialty Lending Group (“Goldman Sachs”) and Business Development Corporation of America (“BDCA”) through a Strategic Merger with BlueSquare Resolutions (BlueSquare: www.getbluesquare.com). BlueSquare’s founder, Sabin Burrell, has become a significant shareholder and Senior Executive of AMS, while also continuing to serve as CEO of BlueSquare.
AMS has achieved a run rate of over $4 billion in annual processing volume. AMS is on track to complete a minority equity financing and two other acquisitions in the next 60 days, and has many other future acquisitions that it intends to complete in the United States and Canada in the coming months.
“With Goldman Sachs, BDCA and our expected new minority equity partner by our side, AMS has extensive liquidity options,” said Jonathan Severn, AMS’ CEO. “It’s our intent to acquire and partner with companies with industry leading managers. Sabin Burrell and BlueSquare are tremendous additions to the family. BlueSquare and AMS complement each other’s businesses, and that is what really drove this merger that has been in the works for well over a year.”
“I watched AMS’ managers help build two separate $1 billion platforms, partner with world-class capital providers, and establish relationships with multiple highly capable sponsor banks and processors, including First Data,” said Sabin Burrell, BlueSquare’s CEO. “Consolidation is happening very rapidly in the payments space. If you are not significant in size, have a product or technology offering or insufficiently capitalized, you will eventually become irrelevant. Our transition to a Full Service Provider (FSP) with one of the largest banks in the world provides us with additional flexibility.”
AMS’ Nasir Shakouri added, “In addition to great new managers, AMS is focusing on new acquisition opportunities with channel-specific initiatives and penetration. We’re looking for companies with good, sustainable long-term growth prospects. The minority equity financing will provide AMS the flexibility to acquire strong and growing businesses at attractive prices.” With regard to sponsor banks, Mr. Shakouri continued, “As BBVA has one of the stronger balance sheets of any bank in payment processing and unique capabilities to execute transactions on an expedited basis, AMS recently added BBVA to augment its other two sponsor banks.”
According to Tom Murphy, Managing Director of M&A Capital, “AMS selected its capital providers through identifying the most experienced banking professionals in payment processing.”
Located in Calabasas, CA, AMS is an integrated provider of merchant payment processing services as well as a provider of various digital marketing solutions primarily to small- and medium-sized merchants located in the United States. The Company delivers its credit and debit card-based payment processing solutions to its merchants who operate either in a physical business environment, over the Internet, or with mobile/wireless devices.
Located in Scottsdale, AZ, BSR is one of the largest First Data ISO’s in the Country. BSR is a multiple year Chairman’s Council Award Winner and sits on the Executive Committee for First Data Corporation. BSR has grown exponentially through strategic partnerships, many of which by way of acquisition.
About M&A Capital
M&A Capital, LLC is a boutique investment banking firm advising businesses and their shareholders on the formulation and implementation of financial strategies that seeks to maximize shareholder value, including: mergers and acquisitions, private placements of senior and junior debt and equity capital. M&A Capital’s professionals have completed $30 billion in transactions.
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