Under One Roof, Nxgen And Payscape Eye Expansion And Acquisitions

Payments providers Nxgen International and Payscape have come under one roof in a deal valued at $124 million and aided by investor Parthenon Capital Partners, the companies announced late last week.

That will provide the impetus for both companies, whose brands will continue, to focus on expansion through organic growth and possible acquisitions, says Tom Nitopi, Nxgen founder and vice chairman of the combined company. Nxgen is based in Whitefish, Mont.

Developing more sales from affinity clients, such as association, is a primary goal, as is working with community banks and software developers, says Adam Bloomston, Payscape cofounder and chief executive. Bloomston is the chief executive of the combined enterprise. Payscape is based in Atlanta.

“We really felt there was a strong cultural fit,” Nitopi says. “We don’t want to underestimate that.” Both he and Bloomston feel there is a shift happening within the payments industry, exemplified in part by the mega-merger of Fiserv and First Data that creates opportunities for other companies to grow. “Movement in any industry creates opportunity,” Nitopi says.

Part of the opportunity may be in making the merchant-boarding process easier and quicker. “We actually feel when you look at the whole industry there’s also some missing parts from the traditional ways you sign merchants,” Nitopi says.  The Nxgen-Payscape combination will target ways to expedite merchant approvals and boarding, and look for ways to make international merchant sales smoother.

Acquisitions, too, will have a large role. “We’re really hoping to bolt on many more acquisitions and incorporate them into the Payscape, Nxgen companies,” Nitopi tells Digital Transactions News. “Parthenon will play a very active role in acquisitions.”

Merger discussions began in earnest in 2018, though Nitopi and Bloomston have known each other for three years. While a possible combination was discussed then—the two companies don’t compete geographically and have different sales structures—the timing was not right, Bloomston says. But last year, following Parthenon’s interest, merger talks renewed.

The combined company processes more than $10 billion in annual payment volume for more than 20,000 merchants in 75 countries.