Cynergy Is an Example of Economic Stresses on ISOs, Experts Say - Digital Transaction News





Tuesday’s news that Cynergy Data was filing for bankruptcy and planning to sell its assets (PIN Debit Payments Blog: Cynergy Data Files for Chapter 11) serves as perhaps an extreme example of the fierce toll the recession is taking on independent sales organizations, observers say. Indeed, some say the ravages of reduced payment volumes, failed merchants, and squeezed margins could well shutter more ISOs, or send more into bankruptcy protection, before the year is out. “I think we’re going to see more going down,” says Richard W. Noble, chief executive of BCC Merchant Solutions, a North Kansas City, Mo.-based ISO



Fourteen-year-old Cynergy Data blamed a weak economy and an “unsustainable debt load “ for its decision to seek Chapter 11 protection and sell its assets to The ComVest Group, a private-equity firm with controlling interests in other ISOs, including Pipeline Data Inc., Cardaccept Inc., AirCharge.com, SecurePay.com, and Northern Merchant Services Inc. (Digital Transactions News, Sept. 1). ComVest’s managing partner is Pete Kight, the founder and long-time chief executive of CheckFree Corp., now part of Fiserv Inc.



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