First Annapolis brings the same degree of specialization to M&A Advisory Services that it does to management consulting. Our M&A Advisory practice is highly specialized given its tight linkage to our consulting business. In other words, we play to our strengths, hence our sharp focus on situations where our relevant experiences and relationships can allow us to add immediate value. We have a commanding knowledge of industry dynamics and a detailed understanding of how value is created in every segment of the payments industry. Together, our M&A and consulting expertise make First Annapolis a truly unique advisory firm
Client Profile
Similar to our management consulting services, First Annapolis offers M&A advisory services to a broad, global client base that includes industry players such as financial institutions, merchant acquirers, transaction processors, payment networks, and emerging payments providers. We also advise private equity firms, venture capital firms, and other investor groups seeking opportunities in the payments sector. For over 15 years, we have advised clients on mergers, acquisitions, divestitures and business partnerships – many of which have shaped the evolution of the payments industry. At the same time, we routinely advise clients on what transactions not to pursue based on our assessment of their strategic and financial value.
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M&A Expertise
We have built our M&A practice around supporting clients on a wide variety of strategic and tactical matters. Our core areas of M&A expertise include the following
Corporate Strategy
- First Annapolis helps its clients develop strategies to mergers, acquisitions and strategic relationships. We use our industry and market knowledge to assist our clients to pursue strategies that maximize business and shareholder value.
- Example of Expertise: Assisted a variety of small and midsize payments companies to develop strategies to enhance their growth and value, including raising equity and debt financing, the formation of key strategic partnerships, pursuit of key acquisitions, etc.
Buy/Sell Representation
- First Annapolis represents clients in connection with both purchases and sales of business and portfolios. We provide comprehensive strategic and tactical advice from market screening through the closing of the transaction. Our deal team takes a proactive, hands-on approach to provide our clients with maximum benefit from our industry and transactional experience and expertise.
- Example of Expertise: Please refer to our “Transactions” section.
Strategic Partnership/Alliance Formation
- First Annapolis has extensive experience working with clients in the formation of creative strategic partnerships and alliances. Our services include transaction structuring, strategic plan development, financial modeling and contract negotiations.
- Example of Expertise: Negotiated ten joint venture agreements between First Data and its primary bank alliance partners.
Valuation & Fairness Opinions
- Because of our specialization, we can leverage our M&A experience and our industry and capital markets knowledge to provide our clients with expert business and portfolio valuations. Our primary goal in preparing a valuation is reaching an accurate conclusion on value while clearly and convincingly communicating our assumptions and methodology.
- Example of Expertise: Performed portfolio, business, and residual valuations for over one hundred clients, including financial institutions, prepaid companies, payment processors merchant acquirers, ISOs, ATM networks, and POS equipment vendors.
Ad-Hoc Transaction Support
- In addition to our comprehensive transaction advisory engagements, we are able to provide ad-hoc support to our clients’ transactions on an “ala carte” basis. Two primary examples of this type of support include buy-side and sell-side due diligence support and contracts negotiations.
- Example of Expertise: Supported several leading card issuers and merchant acquirers in negotiating final business terms and service levels prior to final deal/agreement execution.
Transactions
First Annapolis has successfully executed over 75 transactions, many of which have change the face of the payments industry. Provided below is a partial, representative list of our achievements:
Credit Card Portfolios
- Advised TJ Maxx in directing the sale of its private label credit card portfolio to GE.
- Advised the FDIC in the sale of Silverton Bank’s credit and commercial card assets to BV Card Assets.
- Advised 5Star Bank in the sale of its consumer and commercial card assets to UMB.
- Advised Federated Department Stores, Inc. in the sale of its $4.0 billion Macy’s credit card portfolio to Citi.
- Advised Sony in the sale of its $1.4 billion credit card portfolio to Bank One.
- Advised J.C. Penney in the sale of its $3.8 billion credit card business to G.E.
Merchant Acquiring Portfolios
- Served as strategic advisor to WorldPay in its acquisition of Cardsave in the U.K.
- Advised Bain Capital and Advent International in the acquisition of a majority stake in Worldpay from the Royal Bank of Scotland.
- Served as strategic advisor to HSBC in forming a merchant acquiring joint venture in the U.K. with Global Payments, the largest arrangement of its kind in Europe.
- Advised First Data in the sale of a portfolio of merchants and agent banks for $55 million to iPayment, Inc.
- Advised Fifth Third Bank in the sale of a $7.5 billion agent bank, ISO, and ISC merchant portfolio to TransFirst.
Deposit Access
- Advised Maverick Network Solutions in the sale of its prepaid processing business to Fiserv.
- Advised Palm Desert National Bank in the sale of its Electronic Banking Solutions to First California Bank
- Advised Palm Desert National Bank in the sale of its ATM, kiosk terminal management services, cash management, and vault cash operations to U.S. Bank
- Advised First Data in the sale of its interest in NYCE Corporation to Metavante
- Served as strategic advisor to Money Station, Inc. in its merger with Pulse
- Served as strategic advisor to Magic Line, Inc. in its merger with NYCE Corporation
Other Transactions
- Served as advisor to Pemco Corporation in its sale of Pemco Technologies, a leading payment processor for credit unions, to Jack Henry & Associates.
- Served as advisor to commercial payments provider Deecal International, Ltd. in its merger with First Data
- Served as advisor to Crittson, a provider of credit and debit card processing and servicing to financial institutions, in its sale to Certegy.
Insights
Our combination of broad consulting expertise and specialized M&A services allows First Annapolis to add value to our clients in several ways beyond the traditional advisory firm. Our differentiating factors include:
- Best-in-class understanding of strategic and tactical issues impacting our clients
- Superior knowledge and experience with both industry and business issues
- Current and deep relationships among both strategic and financial buyers/sellers
- In-depth understanding of potential structures and parties, including strengths and weaknesses.
For examples of articles that cite our insights on the payment services M&A market, please refer to the following links:
- http://www.firstannapolis.com/get_navigator.cfm?navigator_id=101
- http://www.firstannapolis.com/get_navigator.cfm?navigator_id=110
- http://www.electran.org/content/view/559/109/
Leadership Team
Our M&A team draws on a pool of professionals with years of experience. Our leadership team has been with First Annapolis for over ten years. For more information on our M&A leadership team, please reference their biographies:
