April 22, 2021
TORONTO, NEW YORK – Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and Stella Point Capital (“Stella Point”) today announced an agreement to sell First American Payment Systems (“First American”), a leader in technology-enabled, electronic payments, to Deluxe (NYSE: DLX) for US$960 million. Ontario Teachers’ and Stella Point will fully exit in conjunction with the transaction, thus successfully concluding their long partnership with First American since 2014.
Headquartered in Fort Worth, Texas, First American is an industry-leading, technology-enabled payment processing company that provides partners and merchants with powerful omnichannel payment solutions. Ontario Teachers’ and Stella Point worked closely with management to significantly enhance the technology platform, pursue strategic acquisitions and accelerate organic expansion into high growth integrated payments verticals.
“From day one, we have had a deep and collaborative partnership with Ontario Teachers’ and Stella Point and are grateful for their instrumental support throughout the last seven years,” said Neil Randel, Chief Executive Officer at First American. “Their industry expertise, operational experience, and approach to value creation certainly helped us to accelerate our growth plans – both organically and through strategic acquisitions – and deepen our capabilities, allowing First American to drive even greater value for our growing customer base.”
“We are pleased to have worked closely with the First American team since 2014 to help drive significant value creation and the continued evolution of the business into one of the leading, technology-driven providers of payment solutions to small- and medium-sized enterprises in North America. We believe this transaction represents a terrific outcome for all stakeholders, and we look forward to continuing to watch First American prosper under the stewardship of its new owners,” said Karen Frank, Senior Managing Director, Equities at Ontario Teachers’.
“Over the past seven years, First American has achieved a tremendous transformation in its business to a leading technology-enabled, omnichannel provider of integrated payment services,” said Adam Godfrey and Justin Wender, Managing Partners of Stella Point. “First American is well-positioned for continued long-term growth in its current markets. We have great conviction that First American will continue to exceed the evolving needs of its partners and merchants and wish Neil Randel, Debra Bradford and the rest of the team well in this next chapter.”
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of 2021.
About First American
First American Payment Systems, L.P., headquartered in Fort Worth, Texas, is a global payment technology company providing leading integrated payment solutions to more than 159,000 merchants throughout the Americas and Europe. First American provides partner and merchant payment solutions that include a robust set of in-store, online and mobile payment solutions paired with the latest in payment security, across a wide range of verticals. Backed by award-winning customer service, merchants and partners have access to our U.S. based Customer Call Center 24/7/365. For more information, visit http://www.first-american.net.
About Ontario Teachers’
The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
About Stella Point Capital
Stella Point Capital is a New York-based private equity firm focused on industrial, consumer, and business services investments. Founded by Managing Partners Justin Wender and Adam Godfrey, the firm actively seeks investment opportunities throughout North America, working closely with management teams to identify strong market positions and achieve transformational growth. Stella Point's investment team has over 75 years of combined investing and operating experience, encompassing more than 35 investments, at leading global private equity firms. Stella Point provides unparalleled senior level attention and expertise, seeking to cultivate strong relationships with portfolio companies to generate superior investment returns and significant long-term value. Please visit www.stellapoint.com for additional information.
Ontario Teachers’ Pension Plan Board
Stella Point Capital
Robin Weinberg / Julie Casale
Sard Verbinnen & Co