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JetPay payment processor sold for $184 million

The company was founded by Bipin Shah, whose legacy includes the MAC Card payment system.


JetPay Inc., an Allentown-based payment processing and hiring software company, has agreed to be acquired by NCR Corp., an Atlanta company that makes payment equipment and ATMs, for $184 million, or $5.05 a share.

The sale price is triple JetPay's recent market value, but below the $6 a share JetPay was valued at in its initial public stock offering in 2012.

JetPay investors including Flexpoint Ford and JetPay chairman Larry Stone have agreed to support the deal, which was announced Monday.

Bipin Shah founded JetPay after raising at least $179 million from investors including Jonathan Lubert of Philadelphia-based JL Squared and New York banks to purchase Allentown-based AD Computer Corp. and Payroll Tax Filing Services Inc. and Jet Pay LLC of Dallas, among others, and combine them into a "one-stop" payments company.

Shah developed the MAC Card debit and payment system for the former CoreStates Financial Corp. (now First Data Corp.'s BuyPass), and also started Genpass (now part of US Bank) and Gensar (Chase Paymentech). JetPay was previously based in Berwyn.

(The earlier version of this item included Electronic Merchant Systems among companies JetPay acquired. However, vice president Merrell Sheehan advises that this deal was not consummated and Electronic Merchant Services remains a private company.)