NEW YORK, Feb. 27, 2014 (GLOBE NEWSWIRE) -- Excel Corporation (OTC:EXCC), announced that it has signed a securities exchange agreement for the acquisition of Payprotec Oregon, LLC d/b/a Securus Payments, a leading west coast based credit card terminal seller and lessor. The closing of this strategic acquisition will accelerate Excel's broader strategy in the financial services and distribution market with immediate revenue and profitability.
With locations in Portland, San Diego, and West Palm Beach, Securus is a financial services company that sells credit card transaction terminals to approximately 10,000 merchants across the United States. Utilizing its approximately 150 employees and 150 independent sales representatives, Securus has historically averaged approximately 500 new terminals per month, with the average terminal processing approximately $100,000 per year. While based on the West coast, Securus processes credit card transactions through its terminals for merchants in every state in the United States. Securus was recently named one of Portland Business Journal's 2012 and 2013 Fastest growing companies and its CEO, Steven Lemma, was also named in the Business Journal's 40 under 40 class. In 2013, Securus Payments won the Best of Portland Award for Merchant Services as well as the elite Inc. 500 award being ranked #372 on the list. Additionally, for three straight years, Securus Payments has been named to the exclusive President's Club Award from First Data, the largest processor in the world.
Cofounder and President of Securus, Mychol Robirds, has been instrumental in growing the company into a multimillion-dollar business. Mr. Robirds is also a veteran of Operation Iraqi Freedom and has since achieved success in sales and business in related consumer and non-profit sectors. Mr. Robirds has also been a major supporter for the Purple Heart Call Center; a service staffed entirely by disabled and combat-wounded U.S. veterans where he helped the firm triple its sales volume and provided advanced sales training to staff members.
With the acquisition of Securus, Excel gains an established company with proven success in leadership and sales that provides the immediate ability to market and sell its broad range of merchant services/products, including merchant processing, cash advance purchases of receivables, and terminal leasing. Securus will operate as a subsidiary of Excel, under the leadership of Steven Lemma and Mychol Robirds. While Securus is expected to continue its already strong growth trend, Excel will have access to a fluid sales operation, helping to facilitate its expansion into other areas of merchant distribution, sales avenues and products.
Excel Corporation is purchasing 90% of the membership interests of Securus Payments for a total of 20,400,000 shares of Excel's common stock and two shares of Excel's Series A Preferred Stock. Mychol Robirds and Steven Lemma, current owners of Securus, will also enter into three-year employment agreements. The securities exchange agreement is subject to a number of conditions, including without limitation, the delivery of audited financial statements, consents of third parties, the filing of the certificate of designation for the Series A Preferred Stock and the execution of the Employment Agreements.
"This acquisition is a clear game changer for both Securus and Excel. It not only adds instant revenue but also bolsters our sales platform and enables us to confidently enter into new markets and distribution channels," stated Ruben Azrak, Interim CEO of Excel. Furthermore, this strategic growth engine also brings along top tier management in the industry with a clear track record of success in building growing sales and distribution platforms. We look forward to closing this transaction in short order and are excited by the tremendous opportunity this growth platform represents.
Steven Lemma, CEO of Securus, stated, "We are pleased to join forces with the Excel team and believe that our combined entities present an enormous growth opportunity for all of our current stakeholders. The key relationships and partners we have developed and nurtured will continue to add significant value in the combined entity, especially as we further implement the growth strategy with new business and product lines."
About Excel Corporation:
Excel Corporation is primarily a credit card merchant processing and acquiring company, which provides credit and debit card processing services for merchants in a variety of industries. In addition, Excel remains in the licensing, merchandising, and distribution business focused on bringing national and international brands to the retail marketplace through licensing opportunities, including the representation of brands, trademarks, designers, events, and personalities of high standing in the industry. Excel's key executives have over 30 years of licensing experience and have established programs at retail which have generated cumulative sales of over one billion dollars.
In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that, whether or not expressly stated, certain statements made in this news release that reflect management's expectations regarding future events and economic performance are forward-looking in nature and, accordingly, are subject to risks and uncertainties. This information is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, which are available at www.sec.gov. We caution readers that certain important factors may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company.