Paytrust Acquiring PayMyBills.com
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Electronic billing and payment (EBP) company Paytrust Inc. is acquiring competitor PayMyBills.com in an all-stock deal that will unite two of the most visible contenders in the growing online consumer bill delivery and payment market.
Both companies are privately held and financial specifics of the acquisition were not disclosed. Both companies allow consumers to receive, review, pay and organize all of their bills online. Completion of the merger is expected within a month, the companies said.
Both co-founders of Paytrust, Edward G. McLaughlin, chief executive officer, and Flint Lane, chairman and president, will retain their current positions in the combined organization.
PayMyBills.com co-founder Jeff Grass will continue with his role in business development, while PayMyBills.com president and COO Jaynie Miller Studenmund will run West Coast operations for Paytrust.
Paytrust has opened three additional board seats that have been designated for PayMyBills.com investors E*TRADE, idealab! and FTVentures.
"We'll be adding a significant customer base, strong business development relationships, and some of the best talent in the business from marketing, to development, to project management," said McLaughlin, Paytrust's CEO.
The two companies already have teamed to deliver private label services for partners including American Express, E*TRADE, GE Financial Network, NextCard and OnMoney/Ameritrade.
"PayMyBills.com and Paytrust have tremendous operational and cultural synergies, from the caliber of our talent to the industry-leading technology," said Tedesco, CEO of PayMyBills.com.
"By combining our operations, both companies achieve the mission we individually set out to accomplish -- to occupy the leadership position in delivering complete bill management services to consumers."
A spokeswoman for Paytrust said there essentially is no competition in this niche. However both CheckFree and billserv.com, among others, market apps to sites that want to offer electronic billing to their visitors.