As per the report, JetPay® Corporation ( "JTPY") recently declared that, on August 22, 2013, Flexpoint Ford, a private equity firm aimed on the financial services and healthcare sectors, inked a definitive deal.
The contract was signed for injecting nearly $40 million in the firm with the acquisition of Series A convertible preferred stock and nearly $16 million would be utilized to step down as the currently outstanding debt with the remainder available to invest in the company's growth.
Bipin C. Shah, Chairman and Chief Executive Officer of JetPay Corporation, explains: "It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services. JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-?regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure, and safe payments solutions for businesses of all sizes." He continued: "Flexpoint's confidence in us validates what we have already created and gives us an opportunity to accelerate our growth."
Don Edwards, Managing Principal of Flexpoint Ford, said: "We are excited to partner with Bipin Shah. We have a longstanding relationship with Bipin and his team and have had success together in the past." He added: "We expect that JetPay's existing core business coupled with management's strong capabilities will deliver results for our investors."