BluePay is a leading provider of technology-enabled payment processing services for merchants and suppliers of any size in the United States and Canada.
TA has been instrumental in helping our team take BluePay to the next level. We’ve built a world-class board of directors, recruited top-notch senior executives and closed four acquisitions, all while accelerating our organic growth rate. Roy Burns and Roger Kafker have worked collaboratively with BluePay to build value for all of our stakeholders.
TA helped BluePay:
- Complete six complementary acquisitions, two of which were originated by TA
- Recruit a new CEO, CFO, Chief Product Officer, EVP of Partnerships and four independent directors
- Transform the sales and marketing organization infrastructure, improving organic growth and deepening BluePay’s partner channel capabilities
BluePay is a leading provider of technology-enabled payment processing services for merchants and suppliers of any size in the United States and Canada. Through online and mobile interfaces, as well as CRM and ERP software integrations, BluePay processes business-to-consumer and business-to-business payments while providing real-time settlement, reporting and reconciliation, along with robust security features such as tokenization and point-to-point encryption. The company was acquired by First Data Corporation (NYSE: FDC) in December 2017.
The Investment Opportunity
TA completed a majority investment in BluePay in August 2013. Having followed BluePay for a number of years, we identified the company as a strong investment opportunity as an emerging leader in the integrated payments space with a high growth, high margin and cash generative model. BluePay chose to partner with TA due to our extensive experience investing in electronic payment companies, and our track record of helping high growth companies continue to scale.
Adding Value to Scale Growth
Working closely with BluePay CEO Bala Janakiraman and management, we identified a number of areas where our firm could add value and support the company’s goal of continued growth. Since TA’s investment in 2013, we supported BluePay’s efforts both strategically and operationally in scaling growth through complementary acquisitions, recruiting key senior staff and independent board members using TA’s broad network, and improving overall company infrastructure. In particular, BluePay needed support in identifying ways to develop a robust “partner” channel for accelerating organic customer acquisition and pivoting toward a more integrated payments company. TA worked with the management team to develop a blueprint for transforming the sales engine to support this vision. Additionally, TA’s Strategic Resource Group worked with management to build from scratch an organic lead generation engine specifically for the partner channel, which is expected to drive a significantly improved flow of qualified leads for the partner network while reducing cost per lead by ~50%.
By the end of TA’s ownership in December 2017, BluePay had more than 77,000 customers and processed approximately $19 billion in annual payment volume. We believe the partnership with TA has helped BluePay lay the groundwork for continued organic and acquisition-led growth in its key verticals, including software developers, not-for-profit organizations and B2B enterprises.
Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.