Financial Transaction Services Secures $50 Million Growth Equity Commitment
Financing to support expansion through organic growth and acquisitions
CLEVELAND, OH/PITTSBURGH, PA – September 16, 2010 – Financial Transaction Services LLC (“FTS”), a full service provider of electronic transaction processing services, today announced that it had secured a $50 million growth equity commitment from FTV Capital, a multi-stage private equity firm that invests in high-growth companies, and has a successful investment track record in payments and transaction processing companies. FTV Capital is the first institutional investor for FTS.
FTS offers a comprehensive suite of transaction processing capabilities for financial institutions, merchants, independent sales organizations, and agents, including credit, debit, check services, gift card programs, EBT, and merchant cash advance. The FTS Total Client Care Teams possess in-depth knowledge of many specialized categories ranging from retail, restaurant and hotel, to convenience store, petroleum, ande-commerce businesses.
FTS is one of the fastest growing transaction processors in the industry, with volume growth of 40% in 2009. This financing will enable FTS to continue its rapid expansion through increased sales efforts targeted at the small and medium business market, especially as electronic payments continue to experience strong growth. Additionally, the company plans to continue to pursue attractive consolidation opportunities in this highly fragmented market.
“We are very enthusiastic about partnering with such an accomplished, well-respected management team in a space where we also have extensive experience,” said Richard Garman, FTV Capital managing partner. “Brian, Jeff, and the FTS team have a history of building successful payments operations. With FTS, they have created a top notch customer service model, serving a wide variety of clients with a feature-rich set of services in a seamless and cost-effective manner.”
“FTV Capital is the logical partner for FTS because of its proven expertise in payments and transaction processing,” said Brian P. Shanahan, FTS chairman and chief executive officer.
Jeff Shanahan, FTS president noted, “FTV has successfully demonstrated their value-add in this category with previous investments, and we welcome the collaboration.”
Richard Garman, FTV Capital managing partner, and Chris Winship, FTV Capital partner, have joined the FTS board of directors.
About Financial Transaction Services
Financial Transaction Services is a full service provider of electronic transaction processing services for merchants, independent sales organizations (ISOs) and financial institutions. Financial Transaction Services offers a comprehensive line of solutions for credit and debit cards, gift cards, electronic check conversion, verification and guarantee as well as terminal services and online Payment Gateway Solutions. Financial Transaction Services is powered by First Data Corporation and is a registered ISO/MSP of Wells Fargo Bank N.A. For more information, visit www.ftservice.com.
About FTV Capital
FTV Capital is a multi-stage private equity firm that invests in high-growth companies offering a range of innovative solutions. FTV Capital provides entrepreneurs with unique access to its Global Partner Network, a group of the world’s foremost financial institutions that have invested in FTV Capital and its portfolio companies for more than a decade. Founded in 1998, FTV Capital has more than $1 billion under management and has offices in San Francisco and New York. For more information, please visit ftvcapital.com.
Karen Derr Gilbert