Clayton-based Clearent, a fast-growing credit-card processing company, has been acquired and is being merged with an Atlanta software provider company called FieldEdge.
Clearent’s new owner, Advent International, announced in late March it had taken a majority stake in Clearent and subsequently merged it with FieldEdge, with Advent owning a majority of the combined business.
Financial terms of the deal were not disclosed. According to Advent’s website, the private equity firm typically makes investments of between $100 million and $1 billion in its portfolio companies.
Clearent, with more than $200 million in annual revenue, reported processing more than $16 billion in credit card transactions last year.
Clearent spokeswoman Amanda Chamov said the company will continue to be based in Clayton and led by CEO Dan Geraty.
No jobs are expected to be subtracted from St. Louis, she said, and the company will still be hiring for open positions at all of its offices. Clearent also has operations in Louisville and West Palm Beach, Fla.
FieldEdge, according to an Advent release, will retain its existing brand and operate as an independent subsidiary of Clearent. The deal follows Clearent’s acquisition in January of Utah-based SPOT Business Systems LLC, which provides software for the dry-cleaning industry.
“Today’s announcement represents an exciting step forward for our customers, partners and employees,” Geraty said in a statement. “Advent is a leader in terms of facilitating growth and enabling execution in payments and software companies. I am confident they are the right partner for us as we look to continue to capitalize on the move toward integrated payments.”
Over the last decade, Advent has invested $2.5 billion in six companies in the payments industry. Those companies have served as platform companies — companies that investment firm use as key portfolio assets to bolt on future acquisitions to — for Advent.
Clearent, which was founded in 2005, previously raised $25 million from investment firm FTV Capital, which also invested alongside Advent in this most recent deal. Other existing investors and senior management of both companies have also rolled a meaningful minority stake in the combined company.
Advent has $42 billion in assets under management. Its current investment fund, the Global Private Equity VIII fund, is worth $13 billion and focuses on investing in the financial services, health care, industrial, retail and consumer, and technology sectors.