NYSE-listed financial services provider, Banc of California recently confirmed that it has acquired the payments platform and technology of Global Payroll Gateway and its wholly-owned subsidiary, Deepstack Technologies.
According to the details shared by Banc of California, the total value of the acquisition stands at around $24 million. The amount has been paid in cash and stock. Deepstack is headquartered in Florida. Banc of California noted that Jayme Amirie will continue as the President of Deepstack.
70% of the total consideration has been paid in cash while the remaining 30% has been paid through the company’s common stock. The entire staff of Deepstack has joined Banc of California. While highlighting the strategic and financial benefits of the latest acquisition of Deepstack, Banc of California mentioned that it will diversify the bank’s revenue mix.
Commenting on the acquisition, Jared Wolff, the President and Chief Executive Officer of the Banc of California, said: “The acquisition of Deepstack expands our business into payment processing and furthers our strategy to grow fee-based income in a scalable and meaningful way. Deepstack’s client-centric technology platform will enable us to offer existing and new clients a best-in-class transaction processing solution. Combined with our existing, leading-edge deposit and treasury management solutions and tailored lending services, we continue to execute our strategy to be the hub of the financial services ecosystem for our clients and enhance the value of our franchise.”
Acquisition Details
For the mentioned acquisition, MJC Partners acted as a financial advisor to Banc of California. Additionally, Paul Hastings served as the legal counsel. Also, the transaction includes a three-year earn-out beginning in 2023.
“We are excited to join Banc of California and provide a full stack payment solution to clients that very few banks and payment processors are able to offer. ISVs and tech-enabled businesses are tired of piecemeal embedded payments and finance solutions and limited interactions with the underlying bank,” Jayme Amirie, the President of Deepstack, said.
