Pivotal Payments Completes Acquisition of Tangarine Payment Solutions
Montreal, Quebec, Canada March 23rd, 2009 - Pivotal Payments (“Pivotal”), one of Canada’s fastest growing merchant services provider, announced today it has acquired Tangarine Payment Solutions Corp ( “Tangarine”) (TSX VENTURE:TAN) for a total consideration of approximately $18 million. Pivotal acquired all the issued and outstanding common and preferred shares of Tangarine and retired all of the company’s third party debt. With this acquisition Tangarine now becomes a wholly owned subsidiary within the Pivotal Payments group and will continue to operate under the Tangarine brand. Pivotal expects through synergies to add an additional $6 million in cash flow from the acquisition. Pivotal will now be servicing a total of 25,000 merchants in Canada through the acquisition of Tangarine and its 8,500 merchants. Pivotal’s total Canadian market share is estimated at 3% to 5%, solidifying it as the largest private, non-bank provider of payment processing solutions in Canada. Currently, Pivotal’s Canadian merchants process $2.5 billion in transaction volume annually and more than 6 million unique transactions per month. Pivotal continues to grow its merchant base, deploying more than 600 new terminals per month.
Pivotal will maintain Tangarine's St. Catherines, Ontario offices and in addition to Pivotal’s Montreal head office and other North American locations. The acquisition brings the Pivotal workforce to approximately 250 employees. “We warmly welcome our new co-workers in St. Catherines and look forward to increasing our presence in Ontario and other parts of Canada,” says Pivotal Payments CEO, Philip Fayer. Pivotal will also add with this acquisition an additional 45 independent sales agents in Canada to its expanding sales network. “We are very pleased with the transaction with Pivotal. We are confident that we delivered value for our shareholders while assuring the long term growth and success of Tangarine’s employees and sales agents”, said Tangarine CEO Keith Turner.
The Tangarine acquisition is the third in a series of strategic acquisitions Pivotal has completed since 2007. With Goldman Sachs as a financial partner, Pivotal’s growth and acquisition plans continue to produce tremendous value and opportunity for its employees, processors and stakeholders.
About Pivotal Payments
Pivotal Payments is a leading merchant services provider with offices across North America, Pivotal provides a full suite of merchant services to small and mid-sized retail businesses, mail order/telephone order merchants, e-commerce, chain stores, franchises, restaurants and dealerships. Merchant services include credit & debit card processing, electronic check conversion, merchant cash-advance programs, loyalty/gift card programs as well as terminal management solutions.
Pivotal Payments is a privately held company.