Growth-oriented private equity firm Great Hill announced on Friday it is set to acquire VersaPay (TSXV: VPY), a provider of cloud-based invoice-to-cash solutions including electronic invoice presentment and payment. According to the duo, Great Hill will indirectly acquire all of the issued and outstanding common shares of VersaPay by way of a statutory plan of arrangement under the Canada Business Corporations Act.
“Under the terms of the Arrangement Agreement, each VersaPay shareholder (the “VersaPay Shareholders”) will receive cash consideration of C$2.70 for each VersaPay Share held (the “Consideration”), valuing VersaPay’s total equity at approximately C$126 million on a fully diluted basis. The Consideration represents a 47.5% premium to the closing price of the VersaPay Shares on the TSX Venture Exchange (the “TSXV”) on December 12, 2019 and a 64.5% premium to the volume weighted average price (“VWAP”) of the VersaPay Shares over the last 30 trading days.”
Speaking about the acquisition, Art Mesher, Chairman of VersaPay, stated:
“We are very pleased to be able to recommend this transaction to our shareholders, employees and customers. With their deep knowledge of our industry and focus on supporting growth companies, Great Hill is uniquely positioned to understand our business and its long term potential, and help the Company to achieve that potential.”
Matt Vettel, Managing Partner at Great Hill Partners, also commented:
“Great Hill is excited to partner with the VersaPay team and provide the capital to execute on their growth strategies.”
Craig O’Neill, CEO of VersaPay, added:
“I’d like to thank our employees who have worked so hard to achieve the growth and success we’ve experienced to date, our customers who have put their trust in us, and our shareholders who have supported us as a public company. We’re equally excited about our future working alongside Great Hill.”
VersaPay, which was founded in 2006, claims to be a leading cloud-based invoice presentment and payment provider for businesses of all sizes. Its ARC software-as-a-service offering allows businesses to easily deliver customized electronic invoices to their customers, to accept credit card and EFT / ACH payments and automatically reconcile payments to their ERP and accounting software.