Repay Holdings Corp. acquired TriSource Solutions, L.L.C. for up to $65 million.

The transaction included $60 million paid at closing and up to $5 million structured as a performance-based earn-out. The acquisition was financed with a combination of cash on hand and proceeds from borrowings under Repay Holdings' existing credit facility.

TriSource Solutions had been Repay Holdings' primary third-party processor for back-end settlement solutions since 2012. Repay Holdings CEO John Morris noted in a news release that having its own back-end transaction processing capabilities will allow Repay Holdings to reduce future targets' transaction-processing costs and expedite other synergy realization efforts. The deal is expected to be immediately and meaningfully accretive to earnings.

Annualized adjusted EBITDA is anticipated to be about $7.0 million. Combined net leverage is expected to be approximately 3.5x on a post-transaction basis, calculated based on the estimated 12 months ended Sept. 30 adjusted EBITDA of Repay Holdings and TriSource Solutions on a combined basis, after giving effect to new borrowings under the existing credit facility and assuming that all cash and cash equivalents, on a combined basis, offset Repay Holdings' post-transaction indebtedness.