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Welsh, Carson, Anderson & Stowe Announces Sale of TransFirst

PAYC

Welsh, Carson, Anderson & Stowe (the “Firm” or “WCAS”), a private equity firm exclusively focused on information/business services and healthcare, announced the sale of its portfolio company, TransFirst Holdings, Inc. (“TransFirst” or the “Company”).

WCAS completed its proprietary acquisition of Hauppauge, NY-based TransFirst in June 2007. The Company is a leading provider of payment technology solutions to merchants in the United States. WCAS’s strong history in the payments processing space includes past deals such as Harbridge Merchant Services, Card Establishment Services, ComData, Alliance Data Systems, Ruesch, and GlobalCollect. These past transactions have generated over $2.5 billion of gains.

TransFirst combines its integrated platform, multi-channel capabilities and partner-centric distribution model to deliver a superior value proposition to the small- and medium-sized business (“SMB”) market. In 2013, the Company served more than 200,000 merchants and processed $42 billion in volume, ranking it as the seventh largest non-bank merchant acquirer in the U.S.

WCAS and TransFirst partnered to drive several strategic growth and operating initiatives, including the build-out of a world class management team, investments in the Company’s proprietary integrated technology platform, focused improvements across key operating disciplines, and the successful development of multi-channel distribution and processing capabilities. These initiatives enhanced TransFirst’s service quality and solution breadth and drove meaningful growth.

“We have enjoyed our close partnership with the TransFirst management team over the last several years.” said Eric J. Lee, General Partner at Welsh, Carson, Anderson & Stowe. “John Shlonsky, CEO of TransFirst, and his leadership team have done an outstanding job building the Company into a market leader. We are confident that TransFirst will continue to build on its continued successes together with Vista Equity Partners.”

With strong private and public market demand, WCAS has continued to pursue attractive exits during 2014. This year, WCAS has sold GlobalCollect, Solstas Lab Partners and Peak 10 and announced the sale of Matrix Medical. Earlier this year, WCAS also completed the initial public offerings of Paycom Software, Inc. (NYSE: PAYC), and K2M Group Holdings, Inc. (Nasdaq: KTWO). Including pending transactions, WCAS has generated distributions to investors of over $5.4 billion since the beginning of 2013. This has resulted in WCAS’s investors receiving $5.82 of distributions for every $1 of capital called.

About Welsh, Carson, Anderson & Stowe

Welsh, Carson, Anderson & Stowe focuses its investment activity in two target industries, information/business services and healthcare. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. The Firm is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P. See www.welshcarson.com to learn more.