New company to serve five fast-growing verticals spanning everyday life activities.
Transaction combines two Advent International portfolio companies.
Clearent, a full-service, integrated payment solutions provider based in the United States and Transaction Services Group (TSG), a global provider of business management software and integrated payments for the subscription economy, today announced that they have entered into a definitive merger agreement. TSG and Clearent, both portfolio companies of Advent International (“Advent”), one of the world’s largest private equity firms and a leading investor in payments technology, are combining to create a superior global platform designed to integrate software, payments, and commerce-enabling solutions for specific vertical markets.
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The resulting company will be relaunched as Xplor Technologies serving over 82,000 businesses that processed over $27 billion in payments, operating across 158 countries in 2020. The group’s offering combines enterprise software solutions for businesses in five industry verticals – Education, Health and Fitness, Boutique Wellness, Field Services and Personal Services – and a global, cloud-based processing platform that allows clients to seamlessly and securely process payments for their services.
The new company will also provide a range of commerce-enabling solutions such as CRM and loyalty program applications, online learning and training software, consumer engagement mobile apps, employee service delivery mobile apps, and billing and account management services that help businesses thrive and prosper by maximizing customer engagement and optimizing operations.
“This is a highly complementary combination of applications and platforms that are well positioned to empower businesses that operate in ‘everyday life’ verticals, which are growing rapidly because they are so important to consumers around the world,” said Floris de Kort, CEO of TSG. “This transaction will enable us to better leverage the advantages of our global breadth with our hyper-local expertise. We will invest in and commercialize our product innovations more effectively, such as our suite of mobile apps, so that we can continue to help our clients eliminate friction and deliver better experiences to their consumers and small businesses.”
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“Our cloud-based, technology platform allows clients and partners to ‘plug and play‘ easily into our suite of software and payments solutions, speeding their time to market and helping them navigate the operational pain points that too often hold businesses back,” said Pamela Joseph, Clearent CEO. “With intimate knowledge of building companies from the ground up, we have a passion for offering a personal and high-quality customer service approach that is lacking in the market today.”
“We have strong conviction in the compatibility of these two companies and their ability to create a category leader” said Chris Egan, Managing Partner at Advent. “We’ve been extremely pleased to see such significant growth in both Clearent and TSG over the past few years, and we believe this combination will further accelerate our expansion into new markets and geographies and better capitalize on the accelerating digitization in our end market verticals.”
“This merger brings together an all-star team of operators and industry entrepreneurs with an impressive track record in developing and operating software applications and payment services,” said Jeff Paduch, Managing Partner at Advent. “Building on our success in creating other payment industry leaders, we are excited to form this platform to drive continued organic and inorganic growth globally.”
Xplor will be headquartered in the United States in Atlanta, GA, with operations across North America, Australasia, Europe, and the United Kingdom employing over 2,000 people. Clearent CEO Pamela Joseph will serve as Executive Chair of the new company and TSG CEO Floris de Kort will serve as Group CEO. The transaction is expected to close in the second quarter of 2021.
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