Applied Merchant Systems Completes Strategic Acquisition and Financing from Goldman Sachs Specialty Lending Group and Business Development Corporation of America

AMS hits major growth milestone amidst competitive industry landscape

 

CALABASAS, Calif.–(BUSINESS WIRE)–Applied Merchant Systems (AMS: www.appliedmerchant.com) continues to develop its integrated electronic payment processing platform while consolidating with other growing merchant acquirers, or independent sales organizations (ISOs). In that pursuit, AMS expanded its senior credit facility with Goldman Sachs Specialty Lending Group and Business Development Corporation of America (BDCA) and acquired a strategic ISO with over 10,000 merchant accounts that contribute over $2.2 billion in annual processing volume. AMS is on track to complete many other future acquisitions in the United States and Canada.

“AMS is evaluating other sources of capital to augment its financings with Goldman Sachs and BDCA to pursue all its strategic objectives.”

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“We are excited about the growth opportunities in front of us,” said Jonathan Severn, AMS’ CEO. “We have a robust acquisition pipeline, and we now have the capital necessary to take us to the next level.”

Clay Hunt, AMS’ CFO, added, “Our most recent acquisition brings additional industry expertise to the AMS team, positioning us for high growth. Combined with the commitment from Goldman Sachs and BDCA, AMS can take on new acquisition opportunities and channel specific initiatives.”

After considering many sources of capital, the AMS team ultimately selected Goldman Sachs Specialty Lending Group, the middle market financing platform within The Goldman Sachs Group, Inc., and BDCA to provide its senior credit facility. According to Tom Murphy, Managing Director of M&A Capital, “AMS is evaluating other sources of capital to augment its financings with Goldman Sachs and BDCA to pursue all its strategic objectives.”

Following completion of the acquisitions, AMS also announced that Chuck Burtzloff, Chairman of AMS, would take an active role in the company’s growth strategy. Mr. Burtzloff was the Founder and CEO of Cardservice International (now Ignite Payments), which was acquired by First Data Corporation. “AMS has my full commitment and support. I am looking forward to assisting the company in its growth,” said Mr. Burtzloff.

About AMS

Located in Calabasas, CA, AMS is an integrated provider of merchant payment processing services as well as a provider of various digital marketing solutions primarily to small and medium-sized merchants located in the United States. The Company delivers its credit and debit card-based payment processing solutions to its merchants who operate either in a physical business environment, over the Internet, or with mobile/wireless devices.

About Business Development Corporation of America

BDCA is a non-traded business development company that has invested more than $1 billion in middle market companies with credit facilities up to $50 million. BDCA was established to provide capital primarily in the form of senior secured loans to middle market enterprises in order to secure the financial foundations that will position them for growth and greater profitability. BDCA focuses on making debt investments in first lien and second lien floating rate loans of various companies in the United States. The company was founded in 2011 and is based in New York, New York.

About M&A Capital

M&A Capital, LLC is a boutique investment banking firm advising businesses and their shareholders on the formulation and implementation of financial strategies that seeks to maximize shareholder value, including: mergers and acquisitions, private placements of senior and junior debt and equity capital, and financial restructurings. M&A Capital begins its engagements by identifying, assessing, and then pursuing all viable financial alternatives available to determine the highest value outcome for its clients. M&A Capital generates the best proposal or, if possible, commitment for each alternative, thereby empowering M&A Capital’s client to select from “actual market alternatives” instead of “potential options.”

Applied Merchant Systems and its respective logos are trademarks, registered trademarks, or service marks of Applied Merchant Systems. Other products and company names mentioned are the trademarks of their respective owners.

Contacts

Applied Merchant Systems
Clay Hunt, +1 800-400-0206
investor_relations@appliedmerchant.com

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