Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The provider of electronic payment processing services says it will use the new capital to build out its payment processing infrastructure and expand its check-guarantee business.
Electronic Clearing House Inc., or ECHO, provider of electronic payment processing services, has raised $3 million through a private placement of 437,957 shares of its common stock with institutional investors.
ECHO says it will use the new capital, amounting to $2.8 million after commissions and expenses, to build out its payment processing infrastructure and expand its check-guarantee business. “We expect continued strong demand for our check products and solid growth in our MerchantAmerica sales channel,” said CEO Jody Barry.
ECHO provides a range of Internet payment services, including online credit card and check processing. It also provides e-commerce services, both directly and with technology partners, for building online stores.
In addition, ECHO has secured a line of credit facility from Bank of the West, providing up to $3 million for working capital purposes.