CPI Card Group Inc. (Nasdaq: PMTS) has acquired Arroweye Solutions Inc. for a purchase price of $45.55 million. Arroweye is a provider of digitally-driven on-demand payment card solutions targeted at the U.S. market. CPI Card Group is a payments technology company providing a comprehensive range of payment cards and related digital solutions.
The acquisition is intended to enhance Littleton-based CPI’s strategy by adding Arroweye’s technology-driven platform, which eliminates the need for customers to hold inventory and offers hyper-personalization and rapid turnaround times. This addition will expand CPI’s portfolio, allowing the company to serve a larger customer base with increased choices.
CPI anticipates that Arroweye’s revenues will reach the mid-$50 million range in 2025, on an annualized basis. “Adding Arroweye’s digitally-driven on-demand payment card solutions to the CPI portfolio supports our strategic focus of putting our customers first, while aiding long-term growth and diversification,” said John Lowe, president and CEO of CPI.
He added, “This transaction brings us additional capabilities, advanced technology and increased capacity, and complements the existing offerings we currently provide to our extensive customer base.”
Arroweye, which has approximately 200 employees, is headquartered in Las Vegas, Nev., where it operates a 75,000-square-foot production facility. The all-cash transaction was completed upon signing on May 6, subject to customary closing adjustments. CPI funded the acquisition through cash and borrowings from its $75 million ABL revolver, and will not assume any Arroweye debt or cash in the transaction.
Dorsey and Whitney LLP served as legal counsel to CPI, while Houlihan Lokey acted as financial adviser to Arroweye, and Faegre Drinker Biddle and Reath LLP provided legal counsel.
