Benzinga | May 25, 2021 08:33AM EDT

GreenBox Announces Acquisition Of Northeast Merchant Services For $2.5M

GreenBox POS (NASDAQ:GBOX) ("GreenBox" or the "Company"), an emerging financial technology company leveraging proprietary blockchain security to build customized payment solutions today announced the acquisition of Northeast Merchant Services, a provider of comprehensive merchant credit card processing services bringing over 700 potential new retail merchant accounts to GreenBox.

Northeast Merchant Services, Inc. offers a full range of merchant credit card processing services nationwide, concentrating in the New England and up-state New York region, providing low-cost solutions to merchants who desire a full-service provider.

By swiftly moving on a unique acquisition opportunity, GreenBox is now grandfathered into a highly beneficial legacy contract. The contract allows GreenBox's BIN sponsor, Merrick Bank, to continue as the sponsor bank for the portfolios while clients continue to have full access to First Data's platform and technology as well. Merrick's technology and long-standing good reputation will allow GreenBox to diversify its portfolio while clients maintain the benefits of First Data's back and front-end platform.

"This is a very important acquisition for GreenBox as merchant services portfolio management is a balancing act between onboarding retail and e-commerce," said Fredi Nisan, Chief Executive Officer of GreenBox POS. "Large merchant portfolios, such as the one GreenBox is building, need the proper risk management balance between lower risk retail and higher risk e-commerce accounts. This acquisition gives us a great jump start toward building a significant retail book which we can then add more e-commerce accounts to."

Under the terms of the purchase agreement, GreenBox acquired Northeast Merchant Systems for $2.5 million in cash with a $0.5 million earn-out over 1 year based on achievement of certain revenue targets.