Paya Inc. has announced today the acquisition of The Payment Group (TPG), a company offering integrated payments solutions to over 600 utility and municipal government clients.
Being an integrated payments solution provider itself, Paya is aiming to significantly increase its market share with this acquisition. In fact, the company highlighted that the deal was inked as a part of its strategic approach to expand into new verticles and add new products.
“TPG perfectly complements our already robust capabilities in the government and utilities sectors,” Paya CEO, Jeff Hack said in a statement. “The acquisition will allow us to provide enhanced solutions to local governments and municipalities as they offer their residents the ability to make digital payments for services like utility and court bills.”
The press release detailed that Paya will invest in TPG’s sales efforts and supplement its technology offerings. The company will further broaden TPG’s marketing efforts, aiming to increase its current customer base.
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Additionally, Paya will add its new subsidiary’s online billing and software applications to Paya Connect, its proprietary end-to-end payments platform.
This is the third acquisition of Paya as it bought Stewardship Technology in late 2018 and First Billing Services last year.
The latest acquisition followed the public listing of Paya’s stocks on NASDAQ as the company completed its reverse merger with FinTech Acquisition Corp III, a special purpose acquisition company (SPAC). Although, GTCR, the existing parent company of Paya, continued to be the largest shareholder of the merged entity.
“The deep expertise, technology, and proven success that the TPG team has achieved with government clients complements the work Paya has already undertaken to enable the highly flexible, vertically tailored, and integrated commerce solutions,” KJ McConnell, Principal at GTCR, said.
“The COVID-19 pandemic is accelerating the shift to digital payments, and TPG provides an affordable solution to smaller municipalities to enable citizens to pay their bills online.”