To our valued Customers and Partners:
Today we have announced a definitive agreement for the acquisition of Versapay by Great Hill Partners, a private equity firm based in Boston. The following FAQ will provide more detail which I trust will be helpful. If you have additional questions, feel free to connect with your primary contact at Versapay. They are ready and waiting to speak with you!
We are excited about this next stage of our journey together as we pursue our big goal to change the way thousands and thousands of companies do business together.
1. What does this announcement mean?
Great Hill Partners, a US private investor, has agreed to acquire Versapay. Our board of directors unanimously supports and believes the transaction is in the best interests of our shareholders, customers, and all of us as employees. The acquisition will be an all cash deal in which $2.70 per share will be paid to shareholders upon closing, which is anticipated to occur within the next 3 months or so. Once this transaction is complete, VersaPay will become a privately-owned company. Versapay ay will continue to operate substantially as it does today, but as one of Great Hill’s portfolio companies versus a public company.
2. Why did Great Hill purchase Versapay?
Great Hill decided to purchase Versapay because of:
- They believe in the potential of the AR Automation and B2B Payments markets
- Our industry leadership in these markets
- Our experienced and talented team
- Our strong customer and partner relationships
- Our product and the valuable intellectual property it embodies.
3. Why did our board of directors accept an $2.70 per share offer?
A company’s current stock price does not necessarily reflect the underlying or intrinsic value of a company. For some time now, our board of directors has carefully evaluated potential plans, proposals and strategies to properly fund the company for growth and create value for our shareholders. Our board has determined that a take-private transaction was the best way to achieve both ends.
4. Who is Great Hill and what do they do?
Great Hill is a Boston-based growth private equity firm that has raised over $7.5 billion since inception. The firm’s principals have over 30 years of experience serving a broad range of technology and service-oriented industries, having invested in more than 100 companies and arranged over $5 billion in expansion and acquisition financings. Through its current and past investments, Great Hill has developed expertise in the payment processing and B2B verticals industries.
5. What does this mean for Versapay?
Great Hill is investing in Versapay because they believe in the potential of the AR Automation and B2B Payments markets, and they believe in our ability to be a leader in these markets. So, our mission and vision are not changing, rather, Great Hill will help us pursue them more energetically.
Being privately owned will allow us more flexibility in the way we run the business and means that we will no longer be encumbered by the costs of running a public company. It also means that we can focus on long-term growth instead of short-term profitability. Taken together, we believe VersaPay will be a stronger company as a result.
6. When will the transaction be completed and what are the next steps?
In the coming weeks, there are a number of steps we need to take to get regulatory and shareholder approval for the transaction. A management information circular containing detailed information about the transaction and will be made available to shareholders and a special meeting of shareholders will be scheduled to vote on the transaction. If two thirds of the shares outstanding vote in favour and all closing conditions are met, then the transaction will be closed. We currently expect this to occur within approximately 3 months.
7. Is this good for Versapay and its customers?
Yes, this is good news. Versapay’s mission and vision remain unchanged, and Versapay will continue its commitments to its customers and passion for driving innovation in the AR Automation space.
8. What does this mean for customers?
There is no change whatsoever for customers. It is business as usual. Versapay remains deeply committed to delivering on its product roadmap and customer commitments. With Great Hill’s backing Versapay will be better positioned to make the kinds of strategic investments in technology and people that will enable us to deliver innovative solutions and attentive customer service.
9. What does this mean for partners?
There is no change whatsoever for partners. It is business as usual. Partners remain a growth opportunity for Versapay’s business and a key enabler of our strategy to drive growth and leadership in the AR Automation market.
10. Will this change affect my pricing, contract or service levels with Versapay?
No. All customer commitments remain in place and there will be no changes to the working relationship. And there are no pricing changes planned based on this transaction. All existing support and service arrangements will continue without interruption and customers will continue work with their existing Success, Support and Implementation contacts.
11. Are there any leadership or organization changes contemplated?
There are no changes planned.
12. Who should I contact if I have further questions on the acquisition?
If you have additional questions, feel free to connect with your existing Success, Support or Implementation contact at Versapay. They are ready and waiting to speak with you!
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