Global payments provider WorldPay has acquired Cardsave, an independent sales organisation distributing credit and debit card processing services to small retailers.
Grimsby-based Cardsave, which was founded in 1995, currently serves more than 42,000 merchants.
The acquisition will enable WorldPay to improve its services to the UK small merchant market.
Cardsave will continue to operate its current business model and brand as part of the WorldPay group of companies. The existing Cardsave management team will continue to manage the business, and Cardsave chief executive Clive Kahn will report to the chief executive of WorldPay, Ron Kalifa.
Mr Kalifa said: "I am personally delighted with the acquisition of Cardsave as this brings mutual benefits to both companies, complementary sales personnel based upon a shared ethos of service excellence and small business support.
"Cardsave will enable us to fulfil our ambitions to support even more 'New To Card' SME businesses in the UK whilst our WorldPay team will continue to support SME businesses who bank with both RBS and NatWest. The acquisition of Cardsave signals our commitment to playing a leading role in better serving the needs of UK merchants."
Mr Kahn added: "Cardsave will benefit from becoming part of WorldPay and the opportunities to strengthen our proposition to small UK merchants, particularly with the growing trend from cash to credit and debit card settlement."
KPMG in London led the sales process. Christian Mayo, head of corporate finance in Leeds, said: "In an M&A market characterised by trade purchasers proceeding with caution and private equity purchasers taking a sceptical view, high quality companies with talented management teams continue to attract a substantial level of interest which is illustrated by Cardsave's sale."
He added: "We expect to see continued activity in the specialist payments sector as trade purchasers continue to seek to purchase niche businesses which complement their existing strengths, rather than build capability from scratch."
The acquisition comes three weeks after private equity firms Advent International and Bain Capital formally completed their acquisition of WorldPay from The Royal Bank of Scotland group.