- Banc of California ( NYSE: BANC ) the parent holding company of Banc of California, N.A. has acquired the payments platform and technology Global Payroll Gateway, Inc. and its Florida-based wholly-owned subsidiary, Deepstack Technologies, LLC for $24M in cash and stock.
- The move enables Banc of California to offer a best-in-class, one-stop-shop payments solution and significantly expands the Bank’s addressable market.
- The addition provides the Bank with a proprietary technology platform for payment processing, offering the full stack of payment services to its clients as a payment gateway, payment provider, and an ISO 8583 payment switch.
- Through its Deepstack subsidiary, the Bank will market payment processing services to a wide range of business clients.
- Per the terms, the Bank acquired the assets of Deepstack for a consideration which was paid 70% in cash and 30% in the company’s common stock using the 20 trading-day volume weighted average closing price of $17.46/share.
- All of Deepstack’s employees have joined the Bank and its three executives have entered into three-year employment agreements with the Bank.
- Eight of the eleven employees are based in Southern California.
- Deepstack Technologies is an operating subsidiary of the Bank and Jayme Amirie will continue as the President of Deepstack.
- The deal is expected to be neutral to consensus earnings per share estimates in 2023 and expected to be accretive thereafter.
- The transaction is expected to be ~2.7% dilutive to tangible book value per share and includes a three year earn out beginning in 2023 to be paid from operating profits of the new subsidiary.
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Banc of California acquires Deepstack Technologies for $24M in cash and stock deal