Capital One announced today the entry into a definitive agreement to acquire BlueTarp Financial, a leading business-to-business trade credit financing company headquartered in Portland, Maine.
BlueTarp delivers customized business-to-business credit management programs to merchants and small- to medium-sized companies. It allows for a seamless purchase-to-payment process featuring a combination of accounts receivable management tools, cash flow and risk protection, with optional collections and customer support. These programs will provide additional servicing capabilities and broader financial offerings for Capital One’s co-brand and private-label credit card partnerships clients.
“BlueTarp offers a unified purchase-to-payment system and fosters strong banking relationships with large merchants and small- to medium-sized businesses alike,” said Buck Stinson, senior vice president of Card Partnerships at Capital One. “We are looking forward to integrating BlueTarp and its innovative technology and services into Capital One’s card partnerships business, enhancing our service capabilities for existing and future partners.”
BlueTarp’s clients include national and regional business-to-business suppliers across a variety of industries including office supplies, hardware, home building, building materials, lumber and supplies, tools and equipment and many more. Founded in 1999, BlueTarp was founded to give building material suppliers a superior credit program that delivers cash flow so that they could invest in their business and grow sales while protecting themselves from risk.
“As an emerging leader in the business-to-business credit management industry, we were eager to identify a like-minded partner who could help us transform this sector on a much larger scale,” said Scott Simpson, CEO of BlueTarp. “We look forward to leveraging our fully developed trade credit technology platform and delivering significant value to Capital One’s existing and future partners.”
Portland, Maine will continue to be home for BlueTarp, which will continue to provide enterprise merchant partners with the same great products and services that they receive today.
Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Capital One in connection with the transaction. Evercore acted as financial advisor to BlueTarp, and Goodwin Procter LLP acted as its legal advisor.