Payroc, a payment platform, has finalized its acquisition of the merchant services business from i3 Verticals, broadening its reach in the payment solutions sector. This acquisition, initially announced in June, aims to extend Payroc’s offerings to a wider array of partners and merchants. By integrating i3’s merchant services, Payroc looks to enhance its service capabilities across various industries. The move reflects a strategic effort to consolidate Payroc’s market position and strengthen its distribution and software solutions. Recent acquisitions highlight Payroc’s expansion strategy, further solidified by its prior purchase of SterlingCard Payment Solutions and Atlantic Merchant Services.
What Does This Acquisition Mean for Payroc?
The acquisition of i3 Verticals’ merchant services business allows Payroc to service approximately 190,000 merchant customers across multiple regions, including the United States, Canada, and the European Union. With an annual processing volume exceeding $115 billion, Payroc’s expanded portfolio will cater to industries such as retail and healthcare. The company plans to leverage i3’s resources to bolster its market presence.
“i3’s merchant services business is an ideal fit for Payroc, and I am especially eager to meet those i3 team members and i3 partners who join us on our journey,” stated Jim Oberman, CEO of Payroc.
How Does This Affect i3 Verticals?
The transaction marks a significant shift for i3 Verticals, as it pivots to focus solely on vertical market software in the public sector and healthcare verticals. The sale of its merchant services business was completed for approximately $438 million in cash. i3 Verticals’ leadership is optimistic about the transition.
“Following this divestiture, i3 Verticals is a vertical market software business focused solely on the public sector (including education) and healthcare verticals,” remarked Greg Daily, chairman and CEO of i3 Verticals.
Previously, Payroc has demonstrated a pattern of strategic acquisitions to enhance its payment solutions. In recent months, acquisitions such as that of SterlingCard Payment Solutions have bolstered its offerings in the Canadian market by adding new capabilities. Similarly, Payroc’s acquisition of Atlantic Merchant Services in May 2023 aligned with its growth strategy by expanding its processing solutions in the mid-Atlantic region. These moves underline Payroc’s commitment to broadening its service range and market footprint.
The completion of the i3 Verticals transaction represents a milestone in Payroc’s ongoing efforts to expand its payment solutions portfolio. By incorporating i3’s services, Payroc aims to solidify its position in key markets while enhancing its technological and operational capabilities. Payroc’s leadership is set to foster integration and collaboration among the newly joined teams and partners, positioning the company for future growth in the payment solutions space. Meanwhile, i3 Verticals’ realignment towards software solutions for the public sector and healthcare indicates a refined focus on its core competencies.
The acquisition of i3 Verticals’ merchant services is a pivotal move for Payroc, reflecting its strategic direction to expand and enhance its payment solutions. With a focus on integrating new capabilities and markets, Payroc is poised to further solidify its position in the industry. This transaction also allows i3 Verticals to concentrate on its specialized markets, potentially leading to more targeted innovations in the public and healthcare sectors. The ongoing evolution of both companies suggests further opportunities for growth and specialization, driven by market demands and technological advancements.
