June 1, 2017TSG Press

TSG in Digital Transactions: In Yet Another ISV Play, GTCR Buys Sage Payment Solutions for $260 Million

Finally, the rumors can stop. Sage Payment Solutions, the U.S. merchant-services arm of Sage Group plc, has been sold to GTCR LLC, a Chicago-based private-equity firm, for $260 million, GTCR announced Friday. Reports of a possible sale of the company, which counts approximately 100,000 merchants in its portfolio, originally surfaced in January.

That growth could come via providing services to software developers. It was one of the first merchant acquirers to actively court independent software vendors, says Peter Michaud, director of project management at The Strawhecker Group, an Omaha, Neb.-based payments consultancy.

“Through Sage Group’s [enterprise resource planning] products and other ISV partners, Sage Payment Solutions is positioned to expand into new ISV verticals and partnerships,” Michaud says in an email to Digital Transactions News. The merchant acquirer also supports the ISO and bank channel.

Strength in integrated payments is a valuable asset lately, as borne out most recently with First Data Corp.’s deal to buy CardConnect Corp., an ISV, for $750 million. “As with recent acquisitions in the payment industry, technology and ISV integration is highly valued,” Michaud says. “The investment commitment in the platform reveals that GTCR sees an opportunity to use technology to drive both revenue growth and operational efficiencies at Sage Payment Solutions.”

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