eResearch | VersaPay Corporation (TSXV:VPY) and Great Hill Partners (private) have entered into an agreement in which an affiliate of Great Hill will acquire VersaPay in an all-cash transaction, which would see VersaPay shareholders receive C$2.70 per share for a total of approximately C$126 million on a fully diluted basis. The all-cash offer is not subject to a financing condition.
The offer represents a 47.5% premium to the closing price of VersaPay on December 12, 2019 and a 64.5% premium to the volume weighted average price (“VWAP”) of VersaPay over the last 30 trading days.
Art Mesher, Chairman of VersaPay, commented, “With their deep knowledge of our industry and focus on supporting growth companies, Great Hill is uniquely positioned to understand our business and its long-term potential, and help the Company to achieve that potential”.
Based in Toronto, VersaPay is a FinTech company that focuses on its ARC Software-as-a-Service (“SaaS”) solution, a cloud-based invoice and payments platform, enabling businesses to produce invoices and receive payments online.
Based in Boston, Great Hill is a private equity firm targeting investments of $25 million to $500 million in high-growth companies across the consumer, digital infrastructure, financial technology (FinTech), healthcare, and software sectors.
In 2018, VersaPay generated revenue of C$4.7 million and adjusted EBITDA of negative $12.9 million. For 2019, analyst estimates were for revenue of C$8.8 million and adjusted EBITDA of negative $8.8 million; for 2020, analyst estimates were for revenue of C$15.5 million and adjusted EBITDA of negative $4.0 million.
A Special Meeting is expected to be held in February 2020 to vote on the deal and the transaction is expected to close before the end of Q1/2020.
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VersaPay Corporation (TSXV:VPY)
- www.versapay.com
- Headquartered in Toronto, Canada, VersaPay is a financial technology company, providing cloud-based accounts receivable automation software and integrated payment solutions.
- VersaPay’s main product is ARC, a cloud-based software solution that integrates with a company’s accounting or Enterprise Resource Planning (“ERP”) system to deliver electronic invoice presentment and payment, cash and collections management, and accounts receivable analytics.
- VersaPay is currently trading at $2.67 with a market cap of $117.3 million.
Figure 1: VersaPay 5-Year Stock Chart
