CSG Systems acquires iCG Pay for $17m to enhance payment solutions
CSG Systems International, Inc. (NASDAQ: CSGS) announced today its acquisition of iCheckGateway.com, LLC (iCG Pay), a prominent North American company specializing in ACH and credit card payment processing, for a purchase price of $17 million with additional performance-based earn-outs. This strategic acquisition is set to significantly boost CSG’s footprint in the payment processing landscape and is anticipated to contribute positively to its profitability starting in 2024.
Transaction Details and Strategic Fit
CSG’s acquisition of iCG Pay not only expands its capabilities in the payment processing sector but also integrates iCG Pay’s robust merchant customer base across multiple high revenue-generating verticals such as financial services, insurance, utilities, and government. The merger of CSG and iCG Pay’s technology platforms is expected to deliver enhanced value to merchants and independent software vendor (ISV) partners through improved offerings.
Growth and Revenue Potentials
iCG Pay has demonstrated a strong track record of double-digit organic revenue growth, boasting approximately $9.5 million in revenue less transaction fees in 2023. The acquisition by CSG is designed to leverage iCG Pay’s established ISV channel partnerships and experienced payments team to further penetrate the North American markets and drive innovative solutions.
Executive Insights
Brian Shepherd, president and CEO of CSG, expressed his enthusiasm for the acquisition, stating, “We are extremely excited to welcome the talented iCG Pay team and the innovative merchants and ISV partners to CSG. This acquisition underscores our relentless commitment to growth and our strategy to diversify our business in a way that adds value for our shareholders, customers, and employees.”
iCG Pay’s Vision and Offerings
Founded in 2008 and formerly known as iCheckGateway.com, iCG Pay aims to support the financial operations of thousands of businesses globally by deploying innovative payment solutions that are secure, reliable, and efficient. Their commitment to simplifying and accelerating payment processes aligns with CSG’s goal of empowering companies to build memorable customer experiences through top-tier billing and payments solutions.
With this acquisition, CSG is set to enhance its service offerings in the fintech sector significantly, improving customer experiences and expanding its market reach. The transaction, which is expected to close following customary regulatory reviews and conditions, marks a pivotal step in CSG’s strategy to innovate and lead in the digital payments space.