Applied Merchant Systems (AMS) has expanded its senior credit facility with Goldman Sachs and Business Development Corporation of America through a Strategic Transaction with Blue Square Resolutions. Blue Square’s founder, Sabin Burrell, has become a significant shareholder; while also continuing to serve as CEO of BlueSquare.
AMS now has 17,500 merchant accounts that contribute over $4 billion in annual processing volume. AMS is on track to complete a minority equity financing and two other acquisitions in the next 60 days, and has many other future acquisitions that it intends to complete in the U.S. and Canada in the coming months.
AMS says it intends to acquire and partner with companies with industry leading managers. Sabin Burrell and Blue Square are tremendous additions to the family. BlueSquare and AMS complement each other’s businesses and that is what really drove this merger that has been in the works for well over a year.
Blue Square says it has watched AMS’ managers help build two separate $1 billion platforms, partner with world class capital providers, and establish relationships with multiple highly capable sponsor banks and processors.
Blue Square also notes consolidation is happening very rapidly in the payments space. If you are not significant in size, have a product or technology offering or insufficiently capitalized, you will eventually become irrelevant. Blue Square transition to a Full Service Provider (FSP) with one of the largest banks in the world provides us with additional flexibility.
AMS is focusing on new acquisition opportunities with channel specific initiatives and penetration. We’re looking for companies with good, sustainable long term growth prospects. The minority equity financing will provide AMS the flexibility to acquire strong and growing businesses at attractive prices. BBVA has one of the stronger balance sheets of any bank in payment processing and unique capabilities to execute transactions on an expedited basis, AMS recently added BBVA to augment its other two sponsor banks.
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