Banc of California buys Deepstack Technologies for $24m
Banc of California has acquired the payments platform and technology of Global Payroll Gateway and its wholly owned subsidiary Deepstack Technologies.
According to the transaction terms, Banc of California paid $24 million for the acquisition, with 70% in cash and 30% in stock at $17.46 per share, with all of Deepstack’s employees joining the bank.
Through the acquisition, the bank will gain access to a proprietary tech platform for payment processing and aims to offer the full stack of payments services as a payment gateway, payment provider and an ISO 8583 payment switch to existing and new clients.
“The acquisition of Deepstack expands our business into payment processing and furthers our strategy to grow fee-based income in a scalable and meaningful way,” says Jared Wolff, president and CEO of Banc of California.
“Combined with our existing, leading-edge deposit and treasury management solutions and tailored lending services, we continue to execute on our strategy to be the hub of the financial services ecosystem for our clients and enhance the value of our franchise.”
Headquartered in Florida, Deepstack offers payment solutions including merchant processing, payments acceptance and disbursements, tokenisation, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services.
Jayme Amirie, president of Deepstack, says the acquisition will enable clients to “seamlessly integrate and monetise their platforms, while giving clients faster access to funds from credit card receivables, same-day account visibility and better reporting and account reconciliation”.
Banc of California is a bank holding company with $9.5 billion in assets and one wholly-owned banking subsidiary, Banc of California, N.A., with 35 offices throughout Southern California.