Great Hill Partners Acquires Majority Interest in BillMatrix Corporation
Boston - January 26, 2004 - Great Hill Partners announced today that it acquired a majority interest in Dallas-based BillMatrix Corporation. BillMatrix is a leading provider of comprehensive electronic payment solutions for companies in the telecommunications, utilities, insurance, and financial services industries. Great Hill Partners was the sole investor in the all equity transaction.
According to Mark Taber, Principal at Great Hill Partners, "BillMatrix is well-positioned to be a leader in the fast-growing and dynamic consumer automated payments industry. The company has developed broad capabilities to serve a wide variety of industries and we are excited to partner with senior management to accelerate the growth of the business." As part of the transaction, Mark Taber and Matt Vettel, a Partner at Great Hill, will join the BillMatrix Board of Directors.
BillMatrix was founded in 1994 and had repeatedly been of of Dallas' fastest growing companies. In 2003, the company's volume of electronic bill payments via credit cards, ATM/debit cards, and electronic checks grew 87% over the previous year.
"Great Hill Partners has an excellent understanding of the payments industry and will bring financial and strategic resources to the company as we enter our next phase of growth," said Scott Walker, President and CEO of BillMatrix. "The electronic bill payment industry is still in its infancy and this transaction will give us the flexibility to take advantage of strategic opportunities as they arise."
According to The Tower Group, biller-direct payments are expected to grow from 41% of all electronic bill payments to 61% by 2005. While the number of bills paid electronically today is still under 5% of all household bills, it has been growing over 30% annually.
In addition to BillMatrix, Great Hill Partners other recent investments include Global Tower Partners, a leading owner and manager of wireless communications facilities throughout the United States; IGN, the Web's largest gaming and entertainment destination; and Vigo, a leading provider of money remittance services.
BillMatrix Corporation provides outsourced payment services for the nation's largest companies using the latest automated consumer interface technologies. Founded in 1994 and headquartered in Dallas, BillMatrix enables corporations in the telecommunications, utility, insurance, mortgage and financial services industries to replace expensive, paper-based methods of remittance with a set of convenient, labor- and cost-saving electronic transactions. Consumers are able to make payments in a private and secure manner, via the Internet and telephone, using a variety of credit card, debit/ATM card, and electronic check payment options. BillMatrix maintains a fully staffed customer service organization to support both its clients and their consumers with any payment issues. For more information, visit www.billmatrix.com.
About Great Hill Partners
Great Hill Partners is a private equity firm that manages over $1 billion in capital and focuses on investing in companies in education, business services, media, information, IT, and communications sectors. Great Hill Partners is currently investing its $460 million fund, Great Hill Equity Partners II, L.P., and is targeting investments of $10 million to $50 million. For more information, please visit www.greathillpartners.com.