- Acquisition Overview:
- CSG, a Colorado-based provider of customer engagement, revenue management, and payments solutions, acquired iCheckGateway.com (iCG Pay) for an initial $17 million.
- The deal includes additional earn-out sums tied to performance goals.
- Strategic Benefits:
- The acquisition provides CSG with new independent software vendor (ISV) channel partnerships.
- CSG gains a “proven team of payments leaders” to help expand its North American payments market footprint.
- Integration and Offerings:
- Once integrated, CSG expects to offer enhanced solutions for automated clearing house (ACH) and credit card processing to merchants and ISV partners.
- Financial Impact:
- CSG anticipates the acquisition will boost profitability in 2024.
- iCG Pay has a history of double-digit organic revenue growth, with 2023 revenue around $9.5 million.
- Company Comments:
- CSG highlighted on LinkedIn that the deal scales its payments capabilities, strengthens market presence, and diversifies its business for shareholders, customers, and employees.
- CSG Background:
- Founded in 1994, CSG provides cloud-driven revenue management, payments, and customer engagement SaaS solutions.
- The company serves over 900 customers in 120 countries.
- Industry Context:
- The deal is part of a busy month of mergers and acquisitions in the fintech sector.
