PIPELINE DATA, announced it has completed its acquisition of Northern Merchant Services, a leading provider of processing services to merchant customers.
Northern Merchant Services currently has service relationships with over 6,000 merchants and receives ongoing merchant referrals from more that 550 bank branches.
“We are very pleased that the due diligence on both our part and that of Pipeline has been successfully concluded,” said Kevin Weller, President of NMS. “We now look forward to integrating our call center expertise and merchant acquisition strategy with Pipeline’s powerful suite of products including its wireless credit card processor initiative.” MacAllister Smith, CEO of Pipeline Data, welcomed Mr. Weller to the Pipeline Board of Directors and commented,” Pipeline welcomes Northern Merchant Services to our company. The union of our companies is the critical first step in Pipeline becoming a major provider of credit card services to whole new sectors of merchants with needs currently unmet in the marketplace.”
For the seven months ended July 31, 2002 NMS on an unaudited basis had revenues of over $1.1 million and had net profit margins after taxes of over 15 percent on a pro forma basis changing from a proprietorship basis to a corporate structure. Terms of the acquisition consist of a convertible preferred note of $2.5 million with NMS having the ability to receive additional shares as the NMS portfolio of merchant accounts grow over the next several years.
For further information, please contact Jack Rubinstein, Chairman, Pipeline Data Inc. at (914) 725-7028; email at [email protected]