LO3 Capital, a private investment firm committed to providing lower-middle market companies with transformative capital, announced today that it provided a debt and equity investment to support the acquisition of CDE Services, LLC by Milestone Partners, a private equity firm that specializes in tec-enabled services and financial solutions.
CDE Services is a leading provider of payment processing solutions for convenience stores, grocery stores, and pharmacies. The Company announced that it has been acquired by Milestone Partners, a private equity firm that specializes in technology-enabled services and financial solutions. The acquisition is expected to enable CDE to expand its market share and product offerings in the fast-growing integrated payments space.
CDE provides merchants with fully integrated solutions that address a multitude of payment processing needs. The Company’s wide breadth of ancillary products and its proprietary technology stack offer clients a premiere service at superior pricing relative to its industry peers. The Company’s omnichannel platform capabilities offer full end-to-end support to a growing recurring revenue base of 24,000 merchants and retailers. CDE also provides customized point of sale device encryption, deployment and activation services for industry leading strategic partners.
Milestone’s acquisition of CDE was supported by a strategic capital investment from an experienced group of investors, including LO3 Capital, Tecum and Navigate Capital.
Joe Cohane, CEO of CDE said: “Given Milestone’s targeted sector focus on financial technology companies, we are confident that together we will rapidly grow through providing superior merchant payment solutions to our valued customers.”
“CDE and its management team have a proven ability to develop and implement industry leading payment solutions. We are excited to partner with Milestone and CDE as they continue to expand their product offerings and market share during this next phase of growth and innovation” – said Glenn Harrison, LO3’s managing partner.
About LO3 Capital
LO3 Capital is a minority owned private investment firm committed to helping lower-middle market companies grow. The firm has offices in Nashville, New York and Dallas and targets business with over $3 million of EBITDA across a variety of industries. LO3 Capital partners with management teams, business owners, and private equity firms to finance organic growth, acquisitions, recapitalizations, and ownership transitions. LO3 Capital was previously a division of Live Oak Growth Capital and continues to manage the Live Oak Growth Capital funds. For more information, please visit lo3capital.com.
