Acquisition Broadens the Suite of Differentiated Payments Solutions and Positions the Platform for Continued Growth
BRENTWOOD, TN – March 19, 2010 – FrontStream Payments, Inc., a national provider of payment solutions, today announced the acquisition of Fast Transact, Inc., a leading provider of innovative payment processing solutions for e-commerce and physical points of sale. The acquisition was funded through an investment by Arsenal Capital Partners.
“The acquisition of Fast Transact strengthens FrontStream’s approach of providing customers with unique, high value payment products. Fast Transact’s secure, integrated payment solutions and its experienced management team provide FrontStream with the expertise to partner with merchants and resellers in growing industry segments,” said Emmet Seibels, CEO and Co-founder of FrontStream Payments. “We are excited about the backing by Arsenal Capital Partners and are confident that Arsenal’s experienced team will serve as exceptional partners to FrontStream.”
Fast Transact President / CEO, David Solomon, said, “We are thrilled to join FrontStream Payments and partner with FrontStream’s investor group. The Fast Transact customized integration technology complement will enhance FrontStream’s electronic transaction processing offerings. Together, we believe this positions the newly combined company to better address customer demands for secure, PCI-compliant processing of Internet and POS payment transactions, data-rich reporting, and value-added services.”
Carty Chock, a Partner at Arsenal Capital Partners, who heads investing in financial services businesses, said, “The investment in FrontStream is consistent with our strategy to back growing, technology-enabled services companies in the financial services sector. The acquisition of Fast Transact represents an important milestone in FrontStream’s strategy to build a leading merchant acquiring business with differentiated solutions and sales expertise. We look forward to partnering with management and employees and existing investors in realizing that vision through organic growth initiatives and acquisitions.” Arsenal executives, Jeffrey Kovach, Carty Chock, and Eugene Gorbach will serve on the Board of Directors of FrontStream. Alan Weber, an experienced financial services executive serving on Arsenal’s advisory board, will act as an advisor to FrontStream’s Board and management.
Noro-Moseley Partners Managing Director, Mike Elliott, speaking on behalf of FrontStream’s existing investors, said, “This strategic combination positions FrontStream and Fast Transact for future success. We look forward to working side-by-side with Arsenal Capital on the Board of Directors.”
About FrontStream Payments
FrontStream Payments is a leading provider of payments products and services to small and medium-sized businesses and independent credit card sales organizations. Offerings include turnkey solutions that enable merchants to increase revenues through the acceptance of credit and debit cards. The company is headquartered in Nashville and has offices in Ft. Lauderdale, FL and Dallas, TX. To learn more about the company please visit www.frontstreampayments.com.
About Fast Transact
Founded in 2002, Fast Transact, provides nationwide retail and Internet merchant account services throughout the U.S. and Canada, payment gateways and software integration for processing credit cards and debit bankcards, ACH check services, affiliate partnership programs, and gift card / loyalty card programs. The company is headquartered in Olympia, WA.
About Arsenal Capital Partners
Arsenal Capital Partners is a New York-based private equity firm that invests in financial services, specialty industrial, and healthcare companies. Arsenal makes investments in sectors where the firm has prior knowledge and experience, and works closely with management of acquired businesses to accelerate growth by leveraging Arsenal’s operational improvement capabilities. Arsenal currently has $800 million of committed equity capital. For additional information on Arsenal Capital Partners please visit www.arsenalcapital.com.
Chris Tofalli Public Relations