Newtek Capital, Inc., a specialist in acquiring, developing and operating early stage high growth businesses, announced today an investment in its partner company, Merchant Data Systems, Inc., a full service payment processing company.
In related news, MDS announced it has executed an agreement with Chase Manhattan Bank and Chase Merchant Services to process through First Data’s alliance platform. The investment was made as a portfolio purchase through Newtek’s Florida-based certified capital company.
MDS ([www.merchantdatasystems.com]) offers merchants an array of services including credit and debit card processing, electronic benefits transfers, equipment sales, leasing and rental programs, 24-7 customer service, supplies and technical support. MDS intends to convert most of its current merchants to the Chase-First Data Platform, enabling merchants to process transactions all over the U.S. By utilizing the Chase-First Data Platform, MDS is able to offer highly competitive rates to its merchants. Recently, MDS signed a contract with another Newtek partner company, Universal Processing Services, LLC to offer its transaction processing to all of Universal.
Newtek Capital, Inc. ([www.newtekcapital.com]) creates significant non-dilutive capital through the operation of seven CAPCOs in four states. Since 1998, Newtek has raised more than $119 million of certified capital and has made investments in 25 companies, 11 majority-owned or primarily controlled partner companies and investments in 14 other businesses. It operates as a holding company for a network of partner companies in a collaborative and coordinated effort to develop successful businesses in a number of emerging and technological areas.