i3 Verticals Completes Sale of Merchant Services Business
September 23 2024 - 7:00AM
Business Wire
Announces Chief Financial Officer Transition
and Appointment of Chief Strategy Officer
i3 Verticals, Inc. (“i3 Verticals” or the “Company”) (NASDAQ:
IIIV), and Payroc WorldAccess, LLC (“Payroc”), a leading
omni-channel payments provider, today announced the closing of the
previously announced sale of i3 Verticals’ merchant services
business, including its associated proprietary technology, to
Payroc. The purchase price paid at closing to the Company was
approximately $438 million in cash (after giving effect to
estimated purchase price adjustments), subject to post-closing
purchase price adjustments.
Greg Daily, Chairman and CEO of i3 Verticals stated, “This
completed transaction marks a significant moment for our company.
Following this divestiture, i3 Verticals is a vertical market
software business focused solely on the Public Sector (including
Education) and Healthcare verticals. We are confident that our
valued employees have found a wonderful home at Payroc.”
Jim Oberman, Chief Executive Officer of Payroc, expressed his
excitement, “We are thrilled that this transaction has closed. This
business is an ideal fit for Payroc, and I am especially eager to
meet those i3 team members and i3 partners who will be joining us
on our journey with Payroc.”
Chief Financial Officer Transition and Appointment of Chief
Strategy Officer
i3 Verticals also announced today that Geoff Smith, who
previously served as the Company’s Senior Vice President of
Finance, has been appointed to serve as the Company’s Chief
Financial Officer, and Clay Whitson, who previously served as the
Company’s Chief Financial Officer, has been appointed to a newly
created position of Chief Strategy Officer. In Mr. Whitson’s new
role, he will focus on capital allocation, M&A and investor
relations.
Greg Daily stated, “We are excited to announce the appointment
of Geoff as Chief Financial Officer and Clay’s new role as our
Chief Strategy Officer. Geoff has excelled at taking on increasing
responsibilities over the last few years and we are confident this
will be a smooth transition. This transition will give Clay time to
work side-by-side with Rick Stanford, our President, and me on a
variety of projects across the Company. In addition to continuing
as a vital member of our executive team, Clay will also remain a
member of our Board of Directors. I would like to congratulate
Geoff and Clay on their new roles, and we look forward to their
continued leadership.”
About i3 Verticals
The Company delivers seamless integrated software to customers
in strategic vertical markets. Building on its sophisticated and
diverse platform of software and services solutions, the Company
creates and acquires software products to serve the specific needs
of public and private organizations in its strategic verticals,
including its Public Sector (including Education) and Healthcare
verticals.
About Payroc
Payroc WorldAccess, LLC is a high-growth merchant acquirer,
processor, and payment integrations powerhouse that offers
best-in-class sales enablement and payment processing technology on
a global scale, delivering proprietary, innovative, and
full-service merchant acquiring solutions together with key card
brand network payment sponsorship registrations. Payroc (through
its subsidiaries) is a registered Visa third party processor, a
Visa independent sales organization, a Mastercard third-party
service provider, a Mastercard member service provider, a payment
facilitator, an encryption support organization for Fifth Third
Bank, National Association ("Fifth Third"), and, in Canada is
registered with Peoples Trust Company, among many others.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995,
which involve risk and uncertainties. You can identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may
include words such as “anticipate,” “estimate,” “expect,”
“project,” “plan,” “intend,” “believe,” “may,” “will,” “should,”
“could have,” “exceed,” “significantly,” “likely” and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operating or financial performance
or other events. These forward-looking statements are based on the
Company’s current beliefs, understandings and expectations. These
forward-looking statements are neither promises nor guarantees, but
are subject to a variety of risks and uncertainties, many of which
are beyond the Company’s control, which could cause actual results
to differ materially from those contemplated in these
forward-looking statements. Factors that could cause actual results
to differ materially from those expressed or implied include: (i)
post-closing risks related to the ancillary agreements entered into
in connection with the closing of the divestiture of the Company's
merchant services business; and (ii) the Company’s ability to
execute on its strategy and achieve its goals and other
expectations after the completion of the divestiture of the
Company's merchant services business, as well as the risks set
forth in the Company’s Annual Report on Form 10-K for the fiscal
year ended September 30, 2023, filed with the Securities and
Exchange Commission on February 21, 2024, the Company’s Quarterly
Report on Form 10-Q for the fiscal quarter ended June 30, 2024,
filed with the Securities and Exchange Commission on August 9,
2024, and the Company’s other filings with the Securities and
Exchange Commission. Any forward-looking statement made by the
Company in this press release speaks only as of the date of this
press release, and the Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240923095072/en/
Clay Whitson Chief Strategy Officer (888) 251-0987
investorrelations@i3verticals.com
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