YapStone establishes a $40M senior credit facility with Comerica Bank and closes on $20M of subordinated debt from Bregal Sagemount
YapStone, a global provider of web and mobile payment technology solutions for large vertical markets and online marketplaces, recently closed a $60M financing package with Comerica Bank and Bregal Sagemount. YapStone has grown 30-40 percent per year over the past 15 years. This financing enables the Company to accelerate its growth initiatives in its existing markets and allows YapStone to aggressively pursue explosive growth opportunities in new verticals and new marketplaces.
“YapStone has established No. 1 market positions in multiple $100B+ markets with a flexible platform and deep vertical expertise. We’ve also proven our ability to power the largest, highest growth marketplaces in the world, including HomeAway® and VRBO®, with highly customized product development, engineering and customer support,” said Tom Villante, YapStone Chairman & CEO. “We expect to process over $14B in transaction volume this year and are well positioned to further capitalize on the global trend towards increasing electronic payments in huge markets once dominated by the paper check.”
“YapStone’s growth is accelerating driven largely by new product introductions, increasing penetration into existing verticals, expanding into new verticals and marketplaces, as well as pursuing strategic partnerships and acquisitions. Our mission since we founded the company has been to change how the world pays in huge vertical markets and I strongly believe we’re just scratching the surface. I couldn’t be more thrilled to partner with these two great firms. Comerica has strongly supported YapStone for several years, and Bregal Sagemount brings a wealth of technology and payments expertise as well as debt and private equity capital markets experience,” said Mr. Villante.
“Bregal Sagemount is excited to partner with the YapStone team on the Company’s next phase of growth,” said Clayton Main, Head of Credit at Bregal Sagemount. “With the Company’s market-leading technology and innovative management team, YapStone has established itself as the go-to provider for payments in several massive vertical markets and online marketplaces. This investment illustrates the flexible capital approach Bregal Sagemount looks to employ when investing in industry-leading companies seeking equity or debt capital.”
“Comerica Bank has been growing with YapStone for almost a decade, and our relationship with the company illustrates Comerica’s ability to scale with our best customers through multiple stages of growth. We’re looking forward to continuing to help the company achieve its strategic and financial objectives for years to come,” said Alan Jepsen, Senior Vice President and Managing Director of Comerica’s Technology and Life Sciences Division.
Financial Technology Partners LP and FTP Securities LLC (“FT Partners”) served as exclusive financial advisor to YapStone in this transaction.
Founded in 1999, YapStone is a leading global provider of web and mobile payment technology solutions, offering a platform that powers electronic payments for international online and mobile marketplaces, including HomeAway® and VRBO®, as well as for targeted, large vertical markets, including apartment and vacation rentals, HOA communities, self-storage and non-profits. YapStone develops tailored payment solutions to address partner needs and in doing so, processes over $14B in payments volume annually. YapStone continues to be recognized for its growth, ranking on Inc. Magazine’s 500/5000 list of Fastest Growing Private Companies for seven consecutive years, and honored in 2013 and 2015 on Forbes’ List of America’s Most Promising Companies. YapStone has raised over $110 million in capital from investors including Accel Partners and Meritech Capital. YapStone is headquartered in the San Francisco Bay area and Santa Monica, California with its international operations center in Ireland. To learn more, visit www.yapstone.com.
Comerica Bank’s Technology and Life Sciences Division is one of the nation’s leading technology banking practices, offering a wide range of financial services tailored to corporate customers, entrepreneurs and professionals. Veteran bankers provide credit and financial services and products to young, growing, venture backed technology and life sciences companies, as well as their more mature counterparts. The Technology and Life Sciences Division serves all major U.S. technology centers from offices coast-to-coast and its headquarters in Palo Alto, California as well as an office in Toronto, Canada. Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company that is among the 25 largest U.S. banking companies. For more information, visit www.comerica.com.
About Bregal Sagemount:
Bregal Sagemount is a growth-focused private equity firm with $650 million in committed capital and one of several Bregal Investment funds that have invested more than $10B since 2002. Bregal Sagemount is focused on investing in and acquiring high growth companies across Financial Technology, Specialty Finance, Software and Technology Services, Information, Internet and Data Infrastructure, Consumer Services and Healthcare IT. Bregal Investments is part of Cofra Holdings AG. For more information, please see www.bregalsagemount.com.
Media Contact for YapStone:
Allison + Partners
Amber Schlaefer, 623-201-5557
Media Contact for Bregal Sagemount:
Doug Allen, 212-520-1385 x5