Purepay, a $100 million buyout fund focused on payments, banking and the financial supply chain, announced today that it has acquired CybrCollect, an electronic check recovery provider based in LaCrosse, WI.
The company has more than 20,000 customers and a broad network of sales agents across North America. For Purepay, this is the third acquisition in recent months.
"Electronic check collection helps merchants effectively recover funds due to them, and CybrCollect's system and reporting tools are among the best in the industry," said Steve Valachovic, Managing Director of Purepay. "The electronic check recovery market is highly fragmented with many players focused in specific geographies. We believe an industry consolidation led by a best-in-class national player will result in strong economies of scale, benefiting both merchants and the industry."
CybrCollect has rapidly expanded its customer base, agent network and product offerings since its founding in 1998 and now operates nationwide. In addition to CybrCollect, the company's core check recovery and check verification offering, the company's products include DepositExpress, which offers automated recurring payment solutions, and TranFusion, a back office conversion product which allows merchants to deposit checks electronically.
Carol Coye Benson, of Glenbrook Partners, noted that there are strong synergies between CybrCollect's products and the customers of Purepay's portfolio companies.
"Purepay's acquisition of two of the leading mid-market remittance providers, Creditron and Netvantage, creates a real cross sell opportunity for CybrCollect's check recovery and electronic payment products to Purepay's strong mid-market customer base. Small and mid-market enterprises remain underserved for payments products; these offerings can provide a bundled, market leading solution to a large market segment."
"Purepay's approach of infusing high growth companies with strategic, operational and financial resources to create market-dominant companies aligns well with our current position," said Kathy Monroe, CEO of CybrCollect.
"CybrCollect's growth has always been strong and our core products are in high demand. We believe we will benefit greatly from Purepay's involvement and capitalize on the opportunities presented in what remains a very open market."
"We are impressed with all the CybrCollect team has achieved over the last few years, and look forward to providing them with the resources necessary to build CybrCollect into an industry-leading electronic payments company," said Valachovic.