Acquisitions	12 Months Ended
Dec. 31, 2024
Business Combinations [Abstract]
Acquisitions	7. Acquisitions Current Year Acquisitions. On April 1, 2024, we acquired a customer communication services business that operates in multiple industry verticals. The acquisition date fair value of the consideration transferred was $15.0 million, which consisted of $11.5 million in cash paid upfront and a non-cash settlement of working capital items of $3.5 million. The results of this acquisition are included in our results of operations for the periods subsequent to the acquisition date. As of December 31, 2024, the purchase accounting for this acquisition was complete. We recorded goodwill of $6.4 million, acquired customer contracts of $4.3 million, trade accounts receivable of $2.1 million, and liabilities assumed of $2.7 million. The amount allocated to goodwill is deductible over 15 years for income tax purposes. On June 3, 2024, we acquired 100% of the equity of iCheckGateway.com, LLC (“iCG”), an ACH and credit card payment processing company. We acquired iCG to further expand the industry verticals we serve and to provide opportunities for the continued growth of our business. The acquisition date fair value of the consideration transferred was $17.6 million in cash paid upon close. The iCG acquisition includes provisions for up to $15.0 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period and are accounted for as post-acquisition compensation, as applicable. The earn-out period is through June 3, 2027. As of December 31, 2024, we accrued $5.5 million related to the potential earn-out payments. The results of iCG are included in our results of operations for the periods subsequent to the acquisition date. As of December 31, 2024, the purchase accounting for this acquisition was complete. We recorded settlement assets of $45.9 million, acquired customer contracts of $10.7 million, goodwill of $4.2 million, and settlement liabilities assumed of $44.7 million. The amount allocated to goodwill is deductible over 15 years for income tax purposes. The cash paid for the acquisitions discussed above, less cash and settlement assets acquired, resulted in net cash provided by business combinations for 2024 of $17.3 million on our Statements of Cash Flows. Prior Years Acquisition. On October 4, 2021, we acquired DGIT, a provider of configure, price and quote (CPQ), and order management solutions for the telecommunications industry. We acquired 100% of the equity of DGIT for a purchase price of approximately $16 million, with approximately $14 million paid upon close and the remaining consideration of approximately $2 million paid through 2025, subject to certain reductions, as applicable. During 2024, 2023, and 2022, we made deferred acquisition payments of $0.5 million, $1.2 million, and $0.3 million, respectively. The DGIT acquisition includes provisions for up to approximately $13 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation, as applicable. During 2024, the earn-out period was extended from September 30, 2025 through December 31, 2026. During 2022, $0.3 million of the earn-out had been achieved and was paid in 2023. As of December 31, 2024, we have accrued $0.4 million related to the potential future earn-out payments.

Acquisitions

12 Months Ended

Dec. 31, 2024

7. Acquisitions

Current Year Acquisitions. On April 1, 2024, we acquired a customer communication services business that operates in multiple industry verticals. The acquisition date fair value of the consideration transferred was $15.0 million, which consisted of $11.5 million in cash paid upfront and a non-cash settlement of working capital items of $3.5 million. The results of this acquisition are included in our results of operations for the periods subsequent to the acquisition date.

As of December 31, 2024, the purchase accounting for this acquisition was complete. We recorded goodwill of $6.4 million, acquired customer contracts of $4.3 million, trade accounts receivable of $2.1 million, and liabilities assumed of $2.7 million. The amount allocated to goodwill is deductible over 15 years for income tax purposes.

On June 3, 2024, we acquired 100% of the equity of iCheckGateway.com, LLC (“iCG”), an ACH and credit card payment processing company. We acquired iCG to further expand the industry verticals we serve and to provide opportunities for the continued growth of our business. The acquisition date fair value of the consideration transferred was $17.6 million in cash paid upon close.

The iCG acquisition includes provisions for up to $15.0 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period and are accounted for as post-acquisition compensation, as applicable. The earn-out period is through June 3, 2027. As of December 31, 2024, we accrued $5.5 million related to the potential earn-out payments. The results of iCG are included in our results of operations for the periods subsequent to the acquisition date.

As of December 31, 2024, the purchase accounting for this acquisition was complete. We recorded settlement assets of $45.9 million, acquired customer contracts of $10.7 million, goodwill of $4.2 million, and settlement liabilities assumed of $44.7 million. The amount allocated to goodwill is deductible over 15 years for income tax purposes.

The cash paid for the acquisitions discussed above, less cash and settlement assets acquired, resulted in net cash provided by business combinations for 2024 of $17.3 million on our Statements of Cash Flows.

Prior Years Acquisition. On October 4, 2021, we acquired DGIT, a provider of configure, price and quote (CPQ), and order management solutions for the telecommunications industry. We acquired 100% of the equity of DGIT for a purchase price of approximately $16 million, with approximately $14 million paid upon close and the remaining consideration of approximately $2 million paid through 2025, subject to certain reductions, as applicable. During 2024, 2023, and 2022, we made deferred acquisition payments of $0.5 million, $1.2 million, and $0.3 million, respectively.

The DGIT acquisition includes provisions for up to approximately $13 million of potential future earn-out payments. The earn-out payments are tied to performance-based goals and a defined service period by the eligible recipients and are accounted for as post-acquisition compensation, as applicable. During 2024, the earn-out period was extended from September 30, 2025 through December 31, 2026. During 2022, $0.3 million of the earn-out had been achieved and was paid in 2023. As of December 31, 2024, we have accrued $0.4 million related to the potential future earn-out payments.