Heartland Secures $40 Million

H eartland Payment Systems Inc., an employee-owned, full-service credit card and payroll-processing provider, has received a $40 million private equity investment from Greenhill Capital Partners LP, LLR Partners Inc. and their affiliated investment funds.

Launched in early 1997 as a merchant card processor, Heartland Payment Systems has evolved into a multiple product transaction processor and recently introduced HPS Exchange, which offers the industry's first client server-based transaction processing platform. The $40 million infusion of new capital will facilitate Heartland's long-range strategic business plan, which includes continuing the build-out of Heartland's national sales and service organization, developing the company's innovative transaction processing platform, strengthening various vertical market partnerships and retiring the company's debt.

Greenhill Capital Partners and LLR Partners share a common focus on developing long-term partnerships with the management teams of portfolio companies and supporting them in building their businesses through direct involvement from beginning to end of every investment transaction. Both of these private equity groups have significant investment flexibility to structure transactions to meet the unique needs of business owners and managers.

"This transaction will provide Heartland the capital to accelerate its growth and continue to gain market share in the payment processing industry," Robert O. Carr, Chief Executive Officer and Chairman of Heartland, said, adding, "We have built our portfolio to an annual run rate of nearly $13 billion over the last four years with minimal capital and feel this equity infusion is the key to both expanding our sales program and introducing innovative technology solutions to our merchant clients. We also look forward to utilizing our financial partners' substantial expertise in helping companies manage their growth."

Robert H. Niehaus, Chairman of Greenhill Capital Partners, said, "Bob Carr and the world-class management team that he has assembled have built Heartland into one of the leading independent merchant payment processors. With one of the largest and most productive direct sales forces and a culture focused on customer service, Heartland is well positioned to capitalize on the robust growth in the payment processing industry."