Breaking Finance News

JetPay is Up 34 Percent- Why?

Shares of JetPay Corporation (NASDAQ: JTPY) are up 34 percent Tuesday after the company announced that it had entered into an agreement with private equity firm, Flexpoint Ford. The firm agreed to invest up to $40 million in the company through the purchase of convertible preferred stock. The investment be used to retire up to $16 million of currently outstanding debt with the balance of the funds used to invest into the company’s growth.

Bipin C. Shah, Chairman and Chief Executive Officer of JetPay Corporation, explains: “It is our plan to become the vendor of choice for businesses in need of the most advanced technologies in payment, processing, payroll, and card services. JetPay also envisions benefiting employees of our customers with payroll services without risk or unnecessary expense. The proposed investment by Flexpoint, a successful and highly-regarded investment firm, provides us with the ability to quickly carry out our plan while providing fast, secure, and safe payments solutions for businesses of all sizes.” He continued: “Flexpoint’s confidence in us validates what we have already created and gives us an opportunity to accelerate our growth.”

Company Profile:

JetPay is a leading provider of vertically integrated solutions for businesses including card acceptance, processing, payroll, payroll tax filing and other financial transactions. JetPay provides a one vendor solution for payment services, debit and credit card processing, ACH services, and payroll and tax processing needs of businesses throughout the U.S. The company also offers low-cost payment choices for the employees of these businesses to replace costly alternatives. Its vertically aligned services provide customers with convenience and increased revenues by lowering payments-related costs and by designing innovative, customized solutions for internet, mobile, and cloud-based recurring payments.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.