VersaPay, a Canadian payment processing and payment systems company, has agreed to sell all the assets of its merchant services portfolio to BluePay Canada, a wholly owned subsidiary of BluePay Processing, for cash consideration of C$10m.
With VersaPay's primary focus on growing its business around ARC, its cloud-based accounts receivable solution, the company's merchant services business was no longer core to the company's growth strategy.
VersaPay said that the sale will allow it to focus on its core business, while providing additional growth capital.
The company intends to use the proceeds from the transaction to accelerate expansion of the its software as a service business through increased investments in sales and marketing, the commercialization of partnerships, and R&D.
Commenting on the sale, VersaPay CEO Craig O'Neill said: "This is an exciting time for VersaPay as we take this decisive step in becoming a pure play cloud-based software company.
“The Transaction gives us the focus and the funding required to fully leverage these channel partnerships and develop new ones, as well as expand our direct sales efforts as we pursue the extensive market opportunity for A/R automation."
In addition to shareholder approval, the transaction is subject to applicable regulatory approvals.