Banc of California in Santa Ana has acquired payments platform Global Payroll Gateway.
The $9.5 billion-asset Banc of California said in a press release that it will pay $24 million in cash and stock for Global Payroll and unit Deepstack Technologies. Based in Jupiter, Fla., Deepstack provides merchant processing, payments acceptance and disbursements, among other things.
Banc of California said it would use Deepstack to market payment processing services to a range of business clients.
The acquisition “expands our business into payment processing and furthers our strategy to grow fee-based income in a scalable and meaningful way,” Jared Wolff, the company’s president and CEO, said in the release.
“Deepstack’s client-centric technology platform will enable us to offer existing and new clients a best-in-class transaction processing solution,” Wolff added.
All of Deepstack’s employees joined the bank and its three executives entered into three-year employment agreements. Eight of the 11 employees are based in Southern California.
Jayme Amirie, Deepstack’s president of Deepstack, retained that title.
Banc of California said it expects the transaction to be neutral to earnings per share in 2023 and accretive in subsequent years. The deal is expected to be about 2.7% dilutive to tangible book value per share. It includes a three-year earn out starting next year to be paid from the new unit’s operating profits.
MJC Partners and Paul Hastings advised Banc of California. MAPP Advisors and Global Legal advised Deepstack.