Auctionpay Inc. has been acquired by Global Payments Inc., one of the world’s largest payment processing firms.
Atlanta-based Global Payments Inc. (NYSE: GPN) acquired Portland’s Auctionpay Inc. on Sept. 28 in an all-cash deal, said Auctionpay CEO Steve Sterba said. Terms of the deal, which was unveiled last week during Global Payment's first-quarter earnings call, have not been disclosed.
The move made the venture-backed Portland startup a wholly owned subsidiary of a company that last year generated $1.6 billion in revenue and has a market cap of nearly $4 billion. Sterba says the deal gives the Portland company a deeper pool of resources.
Portland-based Auctionpay provides software and payment processing services for nonprofit fund raising events and philanthropic giving.
Sterba declined to provide the company’s revenue, but said it has been backed by two rounds of venture capital led by Seattle-based Maveron LLC and Denver-based Appian Ventures. He declined to identify the amount of venture capital the company has received.
Sterba said Global Payments is allowing Auctionpay to continue to operate independently while feeding the company capital to grow internationally, accelerate product development and potentially make acquisitions.
“I’m very excited to be able to operate somewhat autonomously but have the ability to leverage capital to grow much faster than we would be able to without their capital,” Sterba said. “This is the second founding of Auctionpay, the next step in our evolution. We have a parent with very deep pockets.”
Sterba said Auctionpay is retaining all of its management and employees and maintaining normal relations with its customers. It intends to start adding more employees this quarter.
Global Payments' shares closed Tuesday up 2.3 percent to $48.84. It has traded between $27.48 and $49.33 in the past year.