VersaPay Announces Closing of Sale of Merchant Services Business

VersaPay Corporation (TSXV:VPY), a leading provider of cloud-based invoicing, accounts receivable management and payment solutions, is pleased to announce the completion of the previously announced sale of all of the assets and property related to the Company’s Merchant Services business to BluePay Canada, ULC. In connection with closing of the Transaction, VersaPay has received $10,000,000 in cash, of which $500,000 has been placed in an escrow account for 12 months to cover potential purchase price adjustments and other potential liabilities for which BluePay is indemnified.
As quoted in the press release:

An additional $1,000,000 will be payable to VersaPay 12 months following closing of the Transaction, conditional upon achievement of 5% growth in VersaPay’s Merchant Service portfolio from newly acquired merchants over such 12-month period.
“We are very pleased to have completed this process in a timely manner, allowing us to focus on our ARC^TM business in 2017,” commented Craig O’Neill, CEO of VersaPay. “We are now well positioned from a working capital standpoint as we pursue the tremendous opportunity that exists in providing an innovative accounts receivable solution across a wide spectrum of industries. We are one month into the year and now have 50 sales reps trained and in-market from our two Canadian partners.  Our focus on launching these partners in Canada while adding new channel partners in the US to augment our growing direct sales pipeline should lead to strong revenue growth this year.”

Click here for the full text release.