SourceHOV and BancTec enter into a Merger Agreement
Merger will create a Global Leader in Transaction Processing Solutions
SourceHOV announced today that the company has entered into a merger agreement with BancTec Group (“BancTec”), to create one of the largest TPS (Transaction Processing Services) service providers worldwide. Both SourceHOV and BancTec are headquartered in Dallas, Texas, and the combined company is projected to have annual revenues in excess of $900mm.
The merger positions the combined company for accelerated growth leveraging technology platforms and service offerings to scale revenue and cross-sell into additional markets throughout the Americas, Europe and Asia. “SourceHOV’s deep domain expertise in Healthcare and Legal claims processing, alongside BancTec’s 40+ years of banking payment processing know-how, enables the creation of a global powerhouse provider for TPS with seamless expansion into new geographies,” said Ron Cogburn, Chief Executive Officer of SourceHOV and Mark Fairchild, President of BancTec in a joint statement. “By leveraging its global presence, the combined company is well positioned to support the growth requirements of both new and existing customers.”
In the transaction, stockholders of BancTec will receive stock in SourceHOV, and SourceHOV will use a new $1.1 billion credit facility to refinance existing indebtedness, redeem certain existing SourceHOV equity holders and provide additional working capital. Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur this year. The transaction value was not disclosed.