DALLAS--(BUSINESS WIRE)--Calpian, Inc. (OTCBB: CLPI), a Dallas-based public company engaged in the electronic payment processing business, announced today that it has completed its acquisition of certain retail credit card processing residual streams from Cooper and Schifrin, LLC, a Cincinnati, Ohio-based merchant services provider (MSP) and independent sales organization (ISO). Calpian paid an aggregate total of $725,000 in cash and issued 417,277 shares of its Common Stock for the acquisition of the residuals from Cooper and Schifrin, which residuals are anticipated to initially generate recurring revenue to Calpian every month.
Unlike typical residual purchase transactions where one party purchases the residuals of another for cash and the deal is done, the Calpian model provides the selling MSP or ISO the opportunity to reap the benefits of the public market by becoming a partner in the future success with Calpian.
Calpian’s Chief Executive Officer, Harold Montgomery, commented: “We are very excited to close the acquisition with Cooper and Schifrin. Cooper and Schifrin has a dynamic team with a very exciting growth-oriented business model. Their skill and expertise in the business-to-business payments market in particular, combined with Calpian's business model, management team and financial resources, makes for a powerful growth recipe."
Cooper & Schifrin’s managing member, Kevin Schifrin, commented: “We have enjoyed a long- standing relationship with Calpian the private company and are very excited to be working with the new public entity. We respect the integrity, fair dealing, and financial expertise of the Calpian management team. They are great problem solvers and truly take the time to find win-win scenarios for each party. We are thrilled they invited us to become part of their new venture and we are very optimistic about the value proposition their equity represents. It is great to have a capital partner that truly understands the nuances of the payments industry and is actively involved in ideating ways to accelerate our sales growth."
Details of the residual purchase transaction is disclosed by Calpian in its Current Report on Form 8-K filed with the SEC on January 6, 2011, and is available at www.sec.gov.
About Calpian, Inc.
Calpian, Inc. (OTCBB: CLPI) is a Dallas, Texas-based public company engaged in the electronic payment processing business. Acting as a link in the delivery chain, Calpian works as an intermediary between large processors and merchants to facilitate payment for goods and services at the retail point-of-sale. Calpian acquires its merchant customers from independent sales agents who sell processing services and equipment to merchants on a daily basis. Calpian is part of the community of an estimated 10,000 ISOs that serve approximately 2 million small merchants in the U.S. across all geographies and industries with an estimated $1 billion in annual residuals. Calpian's management team has over 60 years in combined experience in the merchant processing/ISO business. During the ten years that they have worked together as a team in the industry, they have been involved in the successful acquisition of hundreds of portfolios from ISOs and have underwritten hundreds more. In that time, the management team has developed substantial experience in the industry and proprietary underwriting and portfolio monitoring capabilities, which they now bring to Calpian. The Company was founded in 2010 and is headquartered in Dallas, Texas. Please visit our website at www.calpian.com.
About Cooper and Schifrin, LLC
Cooper & Schifrin LLC (C&S) dba the Sterling Buying Group is a Cincinnati, Ohio-based Limited Liability Company founded in 2006. C&S, an independent sales organization (ISO) with a national presence in most major U.S. markets, sells merchant processing services primarily in the business-to-business and card-not-present segments of the payment industry. In addition to merchant processing services, the Company develops and hosts custom payment applications geared to achieve optimal transaction interchange qualification rates and to streamline the accounting and cash reconciliation processes. With annual processed volume in excess of $1 billion dollars, the Company has achieved over 50% revenue growth each year since its inception. For more information, please visit our website www.sterlingbuyinggroup.com.
Cautionary Statement Relevant To Forward-Looking Information:
This press release may contain certain "forward-looking statements" relating to the business of Calpian, Inc. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the future expected revenues from acquired residual streams; the general ability of Calpian, Inc. to achieve its commercial objectives, including raising sufficient capital to fund future acquisitions; the business strategy, plans and objectives of Calpian, Inc.; and any other statements of non-historical information. Words such as "anticipates," "expects," "plans," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections, are not guarantees of future performance, and are subject to a variety of risks, uncertainties and other factors, some of which are beyond Calpian, Inc.'s control and are difficult to predict, including those discussed in Calpian, Inc.'s periodic reports and registration statements that are filed with the SEC and available on its website (http://www.sec.gov). You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Calpian, Inc. undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.