REPAY to Acquire Accounts Payable Automation Provider Kontrol Payables
June 22 2021 - 9:07AM
Business Wire
Company Posted Webcast to Review the
Transaction and its Larger B2B Business on Investor Relations
Section of REPAY.com
Repay Holdings Corporation (NASDAQ: RPAY) (“REPAY”), a leading
provider of vertically-integrated payment solutions, today
announced it has acquired Kontrol Payables (“Kontrol”) for up to
$11 million, of which $8 million was paid at closing. The
acquisition will be financed with cash on hand.
Kontrol, which was founded in 2011, is an integrated accounts
payable (“AP”) automation solutions provider serving clients in a
variety of end markets, including construction, food production,
software, manufacturing, and education. Kontrol utilizes its 30+
ERP integrations and network of over 13,000 suppliers to deliver
efficiencies to its clients’ AP workflows, ultimately executing its
clients’ outbound payments using a variety of payment modalities,
including virtual card, enhanced ACH, ACH, and check. Kontrol is
expected to process approximately $300 million of virtual card
volume in 2021.
“With their AP automation capabilities and supplier network,
Kontrol is the perfect partner to grow our AP automation business
and enhance our comprehensive B2B offering. In an increasingly
digital world, there continues to be ever-strengthening demand for
technology-first B2B automation and payment solutions, as
enterprise customers aim to reduce costs and streamline back office
processes. This acquisition will give us the opportunity to
leverage REPAY’s B2B technology infrastructure, increase our
virtual card volume, and better position us to address the $2.2
trillion total addressable market for our B2B AP automation
business,” said John Morris, CEO of REPAY. “We are thrilled to
welcome the Kontrol team to the REPAY family.”
REPAY posted a webcast and presentation to review its larger B2B
business on the investor relations section of the Company’s
website, found here – investors.repay.com.
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, sales opportunities and growth, products and services;
and other statements identified by words such as “will likely
result,” “are expected to,” “will continue,” “is anticipated,”
“estimated,” “believe,” “intend,” “plan,” “projection,” “outlook”
or words of similar meaning. These forward-looking statements
include, but are not limited to, statements regarding the expected
impact of the COVID-19 pandemic, REPAY’s industry and market sizes,
future opportunities for REPAY, including Kontrol, as well as the
level of Kontrol’s growth and financial contributions. Such
forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events may
differ materially from the results anticipated in these
forward-looking statements.
In addition to factors previously disclosed in prior reports
filed with the U.S. Securities and Exchange Commission and those
identified elsewhere in this communication, the following factors,
among others, could cause actual results and the timing of events
to differ materially from the anticipated results or other
expectations expressed in the forward-looking statements: the
impacts of the ongoing COVID-19 coronavirus pandemic and the
actions taken to control or mitigate its spread (which impacts are
highly uncertain and cannot be reasonably estimated or predicted at
this time); a delay or failure to integrate and realize the
benefits of the Kontrol acquisition and any difficulties associated
with marketing products and services in the AP automation market to
REPAY’s existing B2B customers; changes in the payment processing
market in which REPAY competes, including with respect to its
competitive landscape, technology evolution or regulatory changes;
changes in the vertical markets that REPAY targets; risks relating
to REPAY’s relationships within the payment ecosystem; the risk
that REPAY may not be able to execute its growth strategies,
including identifying and executing acquisitions; risks relating to
data security; changes in accounting policies applicable to REPAY;
and the risk that REPAY may not be able to develop and maintain
effective internal controls.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any projections and
forward-looking statements and the assumptions on which those
forward-looking statements are based. There can be no assurance
that the data contained herein is reflective of future performance
to any degree. You are cautioned not to place undue reliance on
forward-looking statements as a predictor of future performance as
projected financial information and other information are based on
estimates and assumptions that are inherently subject to various
significant risks, uncertainties and other factors, many of which
are beyond our control. All information set forth herein speaks
only as of the date hereof in the case of information about REPAY
or the date of such information in the case of information from
persons other than REPAY, and we disclaim any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Forecasts and estimates regarding REPAY’s industry and end markets
are based on sources we believe to be reliable, however there can
be no assurance these forecasts and estimates will prove accurate
in whole or in part. Annualized, projected and estimated numbers
are used for illustrative purpose only, are not forecasts and may
not reflect actual results.
About REPAY
REPAY provides integrated payment processing solutions to
verticals that have specific transaction processing needs. REPAY's
proprietary, integrated payment technology platform reduces the
complexity of electronic payments for merchants, while enhancing
the overall experience for consumers and businesses.
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version on businesswire.com: https://www.businesswire.com/news/home/20210622005733/en/
Investor Relations Contact for REPAY: repayIR@icrinc.com
Media Relations Contact for REPAY: Kristen Hoyman (404) 637-1665
khoyman@repay.com
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