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PayLogec Merchant Solutions and Nxgen Canada, a unit of Nxgen International, a Whitefish, Mont.-based independent sales organization, have formed PayLogec/Nxgen Canada. Don Andrews, president of Calgary, Alberta-based PayLogec, tells CardLine sister publication ISO&Agent Weekly that while his company has the sales expertise within Canada, it lacked the technological expertise that Nxgen has. "The only thing they were missing was a strong handle on the sales dynamic in Canada," while PayLogec needed merchant-reporting capabilities, Andrews says. "PayLogec understands the Canadian marketplace," says Thomas Nitopi, Nxgen CEO. Nxgen's software is adept at managing merchant-referral accounts, a feature financial institutions seek, he says. The new company is targeting small and midsize financial institutions in Canada that may range in size from a single branch to as many as 30 branches, Nitopi says. Neither company paid the other to create the new entity, but profits generated by merchants placed into the PayLogec/Nxgen Canada portfolio will be split between the two parent companies, he says. Andrews will oversee between 50 and 70 salespeople across Canada. Both companies work with Elavon Canada, a unit of Atlanta-based payment processor Elavon Inc. Nxgen Canada says the newly formed company will process approximately $2 billion in annual transactions in North America. Nxgen Canada and PayLogec, which also is an ISO, continue to operate as separate companies.
