GTCR investing $300 million on corporate paymentsAugust 16, 2011: 3:44 PM ET
A payments deal that isn't about the consumer.
The deal is expected to close later this week, with GTCR committing up to $300 million in equity. Around half of that will be the purchase price for Las Vegas-based BankServ, while the rest will be reserved for add-on acquisitions and other expansion needs.
"Most people looking at the payments area are focused on consumer, but corporate payments is an area of great growth, says Collin Roche, a principal with GTCR. "Banks are under real pressure to improve their corporate payment processes."
Roche adds that GTCR will use BankServ and its management team as a platform around which to build, and that he already has identified around 10 possible acquisition targets.
BankServ was founded in 1996, and backed by venture capital firms like (now-defunct) Thomson Financial Ventures. It currently works with more than 500 banks in 52 countries, and last September acquired NetDeposit, a provider of check electronification and payments technology.