QUINCY, Mass.--(BUSINESS WIRE)--On Wednesday, May 21st, the Board of Directors of Pipeline Data Inc (OTCBB:PPDA - News) approved the Merger Agreement between Pipeline and COCARD(R) Marketing Group, LLC ("COCARD"). The Merger Agreement provides for Pipeline to acquire COCARD for approximately $79.5 million in cash and notes plus future considerations based on performance. COCARD is a Nashville, Tennessee-based merchant services provider comprised of 73 independent sales offices catering primarily to small and medium-sized retail accounts. COCARD processes over $3 billion of credit card transactions annually from its base of over 26,000 merchants.Pipeline Data 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 approximately $70 million will be available to support the purchase. Pipeline has also received a proposal for the equity component of the transaction in the amount of approximately $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 COCARD transaction is, among other matters, subject to the approval of the proposed financing institutions and COCARD's Class A Members.
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