SecurePay
SecurePay provides a broad, complementary range of electronic payment and e-commerce solutions that include online payment gateway software and volume billing and payment software. Its key advantage is being able to provide multiple services to different markets using the same core technology and operating platform.
Background
SecurePay was established in 1999, combining the latest in internet, telephony and banking network technologies to develop a range of payment-based tehcnologies and other complementary applications. Advent provided expansion capital funding in March 2000, which enabled SecurePay to commercialise its payments technology.
Advent also assisted with further acquisitions of organisations and technology platforms that complemented the core range of services and to consolidate its position as a market leader in the Australian payments services sector.
Investment Rationale
KEY QUALITIES
- Early-stage investment risk was counter balanced by existing strong cash flow from telephone calls charge business
- Fixed cost business with high margins that, once past break-even, would produce substantial profits with growth
- Very good software platform and links to all major banks
- Early-stage but gateway had made sales and was a potentially strong growth market
INVESTMENT THESIS
- Build and commercialise a strong private payment gateway business
- Funding costs were reduced due to strong cash flow and overheads provided by telephone call charges business
- Exit SecurePay via a strategic sale to larger player attracted to the high-growth market
This acquisition assists with our growth in the digital world as we move to offer everything we do in the physical world, digitally.
Value Add
- Changed senior management including the founder’s role as managing director, and supported the business with extra funding until it produced sustainable profits;
- Participated in seven synergistic acquisitions, all of which were successful;
- Leveraged Advent’s banking relationships to enable the business to fund acquisitions from debt, which would have been unavailable without Advent’s involvement.
Exit
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