Payment processor Vantiv has agreed a $1.65 billion deal to buy Mercury Payment Systems from private equity firm Silver Lake Group.
Founded in 2001, Mercury has a network of more than 3000 point-of-sale software developers and dealers that serve small and medium-sized businesses across North America. The firm generated net revenue of $237 million last year, up 17% on the previous 12 months.
Vantiv argues that the deal will help boost its presence in the fast-growing integrated payments arena.
Charles Drucker, CEO, Vantiv, says: "The emergence of integrated payment technology at the point-of-sale delivers a differentiated merchant experience and creates a highly-efficient, cloud-based delivery model for customer acquisition and retention.
"By combining Mercury's distribution network and innovative solutions with Vantiv's technology platform and products, we are developing a payments eco-system that allows us to serve these clients in new and exciting ways."
The transaction, slated to close in the second quarter, is being funded with committed financing. It is expected to add two percentage points to Vantiv's net revenue growth per year.
Mercury is now shelving its IPO plans.