Pipeline Data has acquired SecurePay, Inc., an integrated provider of transaction processing services, gateway services, related software application products, and value added services to wireless and Internet merchants.
The acquisition transitions Pipeline’s business plan from solely that of an information outsource service provider in the healthcare industry to an information and money transactions platform for government and merchant Internet users.
SecurePay supplies transaction processing support for all major credit and charge cards, including Visa, MasterCard, American Express, Discover, Diners Club, and JCB. The company also offers access to check verification services.
SecurePay provides merchants with a broad range of transaction processing services, including transaction authorization, data transmission, and billing dispute resolution. The company is an industry leader in the development of software applications that can be delivered through its proprietary host network.
SecurePay utilizes multiple channels to market its products and services. The company holds various strategic alliances with PDA device manufacturers and software developers, as well as with industry leaders in Internet banking and processing.
The agreement to acquire SecurePay was approved by the unanimous consent of the Board of Directors of Pipeline and SecurePay and will take effect on March 19, 2002. As a result of this transaction, SecurePay becomes a wholly owned subsidiary of Pipeline. The acquisition of SecurePay calls for a stock for stock exchange in which Pipeline acquires all of the issued and outstanding common stock of SecurePay in exchange for the issuance of 7,600,000 newly issued shares of its common stock. The former shareholders of SecurePay have certain earn-in capabilities based upon revenue milestones achieved within a specified period of time.
Pipeline believes that with this acquisition it will have the revenues, infrastructure, and personnel necessary to rapidly expand its services. Jack Rubinstein, Chairman of Pipeline, stated ” The SecurePay acquisition affords our company the ability to offer the healthcare industry, insurance industry, government sector, and a wide array of wireless technology innovators, a suite of products in data and transaction processing that move forward the ability of a provider to interact much more efficiently with any customer. The provider-customer interface is a huge and rapidly growing sector of the American economy. Pipeline intends to be a technology and corporate leader in this space.”
With the acquisition of SecurePay, Mr. Rubinstein will remain as Chairman of Pipeline Data. MacAllister Smith, CEO of SecurePay, will join the board of Pipeline and will become CEO of Pipeline. Mr. Smith has held ownership positions in two transaction processing companies that have successfully merged with public companies, Pinnacle Financial Technologies, Access Services, Inc. Previously, he was regional vice president for NOVA Information Systems, Inc. (NYSE: NIS).
“We are delighted to be aligning our interests with Pipeline Data,” said Smith. “Jack Rubinstein shares our vision of a specialty transaction company capable of proliferating our technologically sophisticated products and services over a broad range of industry segments. The markets we target are vast, and in our opinion, inadequately served at the present. We strongly believe that the merger affords the new company a major strategic advantage in capitalizing on the large and rapidly growing field of specialty electronic payments.”
Ms. Maureen Bell will become the COO of SecurePay. Ms. Bell has many years of management experience in the credit card processing industry on both the acquiring and issuing sides with such major card processing companies as TSYS, Inc. and Lynk Systems, Inc. Anthony Reynolds will become Pipeline’s Chief Technology Officer. Mr. Reynolds has a national reputation in the field of wireless processing and the secure gateway card interface.
Pipeline looks forward to rapidly instituting several pre-planned initiatives and will inform shareholders and the industry as events progress.Details