Capstone Partners advised Payix, a loan repayment technology firm, on its sale to Repay Holdings Corporation (REPAY).

REPAY acquired Payix on a cash-free, debt-free basis for up to $115 million. $95 million was paid at closing and up to $20 million may become payable through an earnout, which is contingent upon Payix’s 2022 performance. Based on historical growth trends, Payix is expected to generate top-line and gross-profit growth in excess of 40% annually through 2023.

Founded in 2016 and based in Fort Worth, Texas, Payix is a leading omnichannel payment technology platform providing solutions that facilitate payments, data exchange, and communication to support customer service and collection efforts in loan repayment verticals. Payix’s software supports a wide range of payment options and modalities and integrates into loan management systems (LMS) and dealer management systems (DMS) by providing a SaaS approach to collections technology.

The acquisition will further enhance REPAY’s position in the automotive vertical and accelerate its expansion into the attractive buy now, pay later space. Payix also brings a complementary sales distribution model—driven by deep integrations with leading LMS and DMS platforms—to accelerate new merchant acquisitions and a proprietary software platform that offers a wide range of omnichannel borrower payment options including via mobile app, web, SMS, agent-assisted, and interactive voice response (IVR).

REPAY provides integrated payment processing solutions to verticals that have specific transaction processing needs. REPAY’s proprietary, integrated payment technology platform reduces the complexity of electronic payments for merchants, while enhancing the overall experience for consumers and businesses.