The Comvest Group Closes Less than Two Months After Chapter 11 Bankruptcy Filing.
LONG ISLAND CITY, NY, – Cynergy Data and The Comvest Group announced today that Cynergy Holdings, LLC, an investment vehicle that is managed by The Comvest Group, has completed the acquisition of substantially all of Cynergy Data’s assets for $81 million.
In conjunction with Cynergy Data’s September 1, 2009 bankruptcy filing, the company sought approval from the United States Bankruptcy Court for the District of Delaware of its transaction with The Comvest Group as “stalking horse bidder.” Following an extensive marketing and sale process, The Comvest Group emerged as the victorious bidder. The bankruptcy court then approved the sale on October 9, 2009, paving the way for the transaction to close. The closing culminates Cynergy Data’s expedited bankruptcy sale process, which was completed in less than two months.
The Comvest Group is a private investment firm focused on providing debt and equity solutions to middle market companies. It is a leading provider of capital to the financial technology markets and owns controlling interests in a number of companies in the electronic payment processing industry, including Pipeline Data, CardAccept, AirCharge, SecurePay and Northern Merchant Services.
The sale enables the core operations of Cynergy Data, a merchant credit card processing service provider, to emerge quickly from bankruptcy as a new company positioned for growth, with a well-capitalized partner, a substantially lower cost structure, and a much stronger balance sheet. The Comvest Group is investing $35 million into the business.
The Comvest Group has indicated its support for Cynergy Data’s management team, its employees and its business plan. “I am very excited about this business and its opportunities in the future. I look forward to working with Marcelo Paladini, whose leadership and vision have helped make Cynergy a leader in our industry, and the entire Cynergy team to build upon the company’s reputation for excellence. Just as Marcelo was the driving force behind creating a successful and dynamic business in the first place, going forward he will play an integral role in strengthening existing business relationships, continuing to build the Cynergy Data brand in the marketplace and shaping the strategic direction of the company. His leadership will remain a key component of our success and we will be working closely together,” said Randal McCoy, chief executive officer for the new company and operating partner with The Comvest Group.
According to Cynergy Data founder Marcelo Paladini, who has assumed the role of vice chairman and executive vice president of business development, “The approval by the bankruptcy court and subsequent closing of our sale to The Comvest Group are critical components of our restructuring strategy. The speed and skill with which this transaction was executed is a testament to the hard work and professionalism of our management, employees, attorneys, financial professionals, investment bankers and other advisers. The entire Cynergy Data team is now focused on continuing to provide world-class products and services to our merchants and ISO partners. I’m very excited about what the future holds for our organization.”
About Cynergy Data
Launched in 1995, Cynergy Data is a merchant credit card processing service provider that gives business owners excellent customer support and unparalleled merchant services. The company emphasizes honest, service-oriented business practices and customer-friendly products and services. During the past 14 years, Cynergy Data has rapidly expanded from a two-person operation to one that employs over 130 service-oriented team members. Headquartered in New York City, Cynergy Data manages a portfolio of nearly 80,000 merchants processing in excess of $10 billion annually.
About The Comvest Group
The Comvest Group is a leading private investment firm focused on providing debt and equity solutions to middle-market companies with enterprise values of less than $350 million. Since 1988 Comvest has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through its extensive financial resources and broad network of industry experts, Comvest offers its portfolio companies total financial sponsorship, critical strategic support, and business development assistance. Comvest additionally owns controlling interest in Pipeline Data, CardAccept, AirCharge, SecurePay and Northern Merchant Services; all credit card merchant servicing organizations. For further information on Comvest, please contact Partner Daniel Nenadovic at 561.727.2070 or via e-mail at: danieln@comvest.com.
About the Restructuring
On September 1, 2009, Cynergy Data, its parent corporation and a wholly owned subsidiary filed voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Honorable Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware is presiding over Cynergy Data’s chapter 11 proceedings. Copies of court documents are available at http://www.kccllc.net/cynergydata.