Thursday 2nd October, 2014

SourceHOV, a leading provider of Transaction Processing Solutions (“TPS”), has entered into a merger agreement with BancTec, a provider of automation and document management.

Both companies have headquarters in Dallas, Texas, and the combined company is projected to have annual revenues in excess of $900mm.

"SourceHOV’s deep domain expertise in Healthcare and Legal claims processing, alongside BancTec’s 40+ years of banking payment processing know-how, enables the creation of a global powerhouse provider for TPS with seamless expansion into new geographies," said Ron Cogburn, Chief Executive Officer of SourceHOV.

In the transaction, stockholders of BancTec will receive stock in SourceHOV. SourceHOV will use a new $1.1 billion credit facility to refinance existing commitments, redeem certain existing SourceHOV equity holders and provide additional working capital.

The transaction is expected to happen this year, which is subject to customary conditions, including regulatory approval.