ProfitPoint Purchases More Than 12,000 Locations in Gift Card Portfolio Deal
Gift/Loyalty Provider Broadens Market Presence
FRANKLIN, TENN. (August 15, 2007) - ProfitPoint Inc., a leading provider of stored value gift and loyalty card services to the mass market, announced today it has acquired in excess of 12,000 gift and loyalty card processing locations from an undisclosed source.
Although no specific terms of the deal were disclosed, the purchase will substantially increase revenues and the number of accounts being serviced by ProfitPoint through its growing portfolio of clients.
Under the terms of the transaction, ProfitPoint agreed to a long-term deal involving its stored value card technology, and will make significant investments in hardware and software upgrades to provide its partners with the highest level of support and product functionality available in the marketplace.
In addition to the system enhancements, additional terminal and point-of-sale software certifications will allow the company to extend its reach into other areas of the small-to-medium-sized merchant marketplace.
"This acquisition will better position ProfitPoint to become the leading provider of stored value gift and loyalty programs within the mass market merchant community, a goal we have had since we started the business in 2003," said Vaden Landers, CEO of ProfitPoint.
"This investment further establishes our commitment to diversifying our distribution capabilities beyond our own direct sales force by aligning ourselves with key channel partners where there is a direct correlation between a customer need and our solution set," Landers added.
A partner in NewSpring Capital, which recently invested a new round of venture capital following ProfitPoint's impressive growth, expressed delight with ProfitPoint's new acquisitions.
"We are very pleased to have been able to complete this transaction so quickly following the close of our Series C round of financing in March, and we continue to be excited about the other opportunities for growth that are filling our pipeline," NewSpring partner Glenn Rieger said.
Profit Point has expanded to nearly 20,000 installed sites, and has seen revenues grow year over year at a rate of 100 percent or more each of its first three years in business. In one of the fastest-growing expansion markets of the value-add arena, ProfitPoint is demonstrating a commitment to helping its clients implement, manage and execute successful customer acquisition and retention programs through on-going education, strategic consultation and world-class support of its card-based offerings.
About ProfitPoint, Inc.
ProfitPoint Inc. is a leading provider of gift and loyalty card services to the small to medium sized merchant community. Headquartered near Nashville, Tennessee, ProfitPoint supports its gift and loyalty cards with point-of-purchase accessories, real-time electronic transaction processing and customizable reports for each merchant. ProfitPoint specializes in the design and production of custom gift and loyalty cards, software capability and merchant education to meet each individual client's needs. Now serving approximately 20,000 merchant locations nationwide, ProfitPoint produces in excess of five million cards per year and does more than 10 million stored value transactions on its gift and loyalty card platform. ProfitPoint has experienced annualized growth of more than 100 percent each year since its inception in 2003.
