Pipeline Data board OKs merger with Cocard

By Jennifer Chiou

New York, May 22 - Pipeline Data Inc. announced that its board has authorized the merger agreement between the company and Cocard Marketing Group, LLC.

Under the agreement, Pipeline is to acquire Cocard for about $79.5 million in cash and notes plus future considerations based on performance.

Pipeline noted that it has received a senior secured debt proposal of $90 million for the funding of the transaction led by a Fortune 10 financial institution, of which about $70 million will be available to support the purchase.

The company also received a proposal for the equity component of the transaction in the amount of about $50 million.

In addition to funding the Cocard acquisition, the funds will reduce Pipeline's current cost of capital and enable the company to properly rationalize its balance sheet in coordination with the transaction.

The transaction is subject to the approval of the proposed financing institutions and Cocard's class A members.

Pipeline, based in Quincy, Mass., provides processing services for major credit card companies.

Cocard is a Nashville-based merchant services provider comprised of 73 independent sales offices.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.