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Pipeline Data Inc. announced Monday it has completed the acquisition of credit card processor PayPassage Inc. Pipeline used funds made available as part of an investment by private-investment firm ComVest Group to facilitate the acquisition. "The PayPassage transaction is one example of the kinds of deployment made possible by the ComVest capital infusion," says Randy McCoy, CEO of Quincy, Mass.-based Pipeline. Pipeline in 2006 also acquired credit card processor Paynet Systems Inc., which the former owners of PayPassage also owned, according to Pipeline. West Palm Beach, Fla.-based ComVest became Pipeline's controlling party in February with its direct investment in the provider of merchant processing services (CardLine 2/26). ComVest issued Pipeline $15 million to restructure debt and acquire additional merchant portfolios. The firm also issued $15 million for preferred convertible stock, which is exchangeable for common stock. Pipeline did not return requests for comment by CardLine deadline.
