Expanding PayFacto’s Global Footprint
PayFacto, one of Canada’s largest non-bank payment processors, serves over 30,000 merchants across Canada, the U.S. and the U.K. The investment will finance PayFacto’s significant expansion into the U.S. market, leveraging its acquiring bank partnership with Community Federal Savings Bank (CFSB).
Building on its earlier acquisitions of the Maitre’D and Veloce POS systems, the funding will also support:
- Further development of PayFacto’s suite of payment products,
- The launch of PayFacto’s new cloud-based POS system, and
- Strategic future acquisitions.
Leadership Comments
Martin Leroux, President and CEO, PayFacto:
“With its impressive track record and experience in the financial services sector, Flexpoint Ford is the ideal partner to help drive PayFacto’s growth. We’re incredibly proud of everything we’ve accomplished as a Canadian company; now we’ve reached an exciting inflection point and our new financial partners will help take us to the next level. Flexpoint Ford not only has a deep knowledge of the payments sector but also shares our values and vision for success. We’re pleased that BMO, which debt financed our two POS acquisitions, will continue to be part of our growth story, now as an equity investor.”
Arjun Thimmaya, Managing Director, Flexpoint Ford:
“We’re excited about PayFacto’s growth potential and the opportunity to further expand its presence in the U.S. by combining payment and POS technologies. PayFacto is a true Canadian success story and we’re eager to help replicate that success in the U.S. We were particularly impressed with the depth of PayFacto’s management team—they have the experience and capabilities to make their vision a reality.”
Vilas Nair, Principal, Flexpoint Ford:
“We look forward to working with management to accelerate PayFacto’s strong organic growth and remain focused on collaborating to advance the Company’s inorganic growth strategy in both payments and POS software systems. Given PayFacto’s history of acquiring and integrating companies in both markets, they are well-positioned as an acquiror of choice.”
Alex Baniczky, Head, BMO Capital Partners:
“Bank of Montreal has enjoyed a longstanding partnership with PayFacto as a lender and we’re pleased to participate in the PayFacto story as a shareholder alongside Flexpoint Ford. We see tremendous upside potential as PayFacto grows its presence in the U.S.”
Advisory and Legal Support
- RBC Capital Markets acted as the exclusive financial advisor to PayFacto.
- BCF served as legal counsel to PayFacto.
- Stikeman Elliott LLP and Kirkland & Ellis LLP served as legal counsel to Flexpoint Ford.
- Oliver Wyman acted as a strategic advisor to Flexpoint Ford.
- Miller Thomson LLP served as legal counsel to BMO Capital Partners.
About PayFacto
Headquartered in Montreal, PayFacto operates in Canada, the United States and the United Kingdom, providing leading payment and hospitality technology solutions. Its offerings include VelPAY, an all-in-one integrated payment and POS solution and proprietary SaaS POS technology. Recognized for its expertise, agility and execution, PayFacto supports merchants of all sizes through a unique suite of integrated solutions, backed by an extensive network of distributors and resellers. For more information, visit payfacto.com.
About Flexpoint Ford
Flexpoint Ford is a U.S.-based private equity firm specializing in investments within the financial services and healthcare industries. With over $5 billion in raised capital, Flexpoint Ford has completed investments in more than 40 companies since its inception in 2005. The firm operates from offices in Chicago, Illinois, and New York, New York. For more information, visit flexpointford.com.
