Repay Holdings Acquires Kontrol Payables for $11M

Integrated payment processing solutions provider Repay Holdings Corporation (RPAY) has acquired accounts payable automation solutions provider Kontrol Payables for $11 million, of which $8 million is to be paid at closing. Following the news release, shares of the company declined marginally to close at $24.66 in Tuesday’s trading session.

Kontrol has a diverse client base spanning industries including construction, food production, software, manufacturing, and education. Notably, the company is likely to process transactions of about $300 million in 2021.

CEO of Repay Holdings John Morris said, “With their AP automation capabilities and supplier network, Kontrol is the perfect partner to grow our AP automation business and enhance our comprehensive B2B offering. In an increasingly digital world, there continues to be ever-strengthening demand for technology-first B2B automation and payment solutions, as enterprise customers aim to reduce costs and streamline back-office processes. This acquisition will give us the opportunity to leverage REPAY’s B2B technology infrastructure, increase our virtual card volume, and better position us to address the $2.2 trillion total addressable market for our B2B AP automation business.” (See Repay Holdings stock chart on TipRanks)

Recently, BTIG analyst Mark Palmer reiterated a Buy on the stock with a price target of $31 (25.7% upside potential).

Consensus among analysts is a Strong Buy based on 6 Buys. The average Repay Holdings analyst price target of $27.67 implies upside potential of 12.2% from current levels. Shares of the company have declined 4.2% over the past year.

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