Payments provider Paya has signed a definitive agreement to acquire The Payment Group (TPG). Details regarding the transaction were not disclosed.
This is Paya’s second acquisition in the government and utilities integrated payments space. Paya is a portfolio company of GTCR and TPG is a portfolio company of Thompson Street Capital Partners.
TPG provides a payment solution to more than 600 utility and municipal government clients, according to the company. TPG currently claims more than 600 clients.
Paya says it will invest in TPG’s sales efforts, supplement TPG’s technology, and broaden marketing efforts to increase the adoption of electronic payments among TPG’s current customer base.
Paya will also integrate TPG’s online billing and software applications into Paya Connect, its end-to-end payments platform.
Jeff Hack, CEO of Paya, said that TPG perfectly complements their capabilities in the government and utilities sector:
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 transaction is expected to close in early October. The acquisition follows Paya’s announcement in August of its intent to merge with publicly-traded special-purpose acquisition company Fintech Acquisition Corp. III (FTAC). Upon the closing of the merger, which is expected to take place in Q4 2020, Paya will trade on the Nasdaq stock exchange under the ticker “PAYA.”
