First Data has entered into a definitive stock purchase agreement that will add BluePay Holdings, Inc. to its ever-expanding portfolio. According to the press release First Data posted to address the partnership, the global leader will acquire the company for $760 million in cash. While the release makes a point to explain the purchase agreement could be subject to adjustments, the intent to purchase is solid with the expected closing date being Q4 of this year.

This presents a big opportunity for First Data to really establish a stronger presence in the Independent Software Vendor (ISV) market – especially in the card-not-present (CNP) and ecommerce segments. BluePay is already integrated with more than 460 software platforms and processes $21 billion annually, according to their website. You combine this with First Data’s already impressive market reach at 6 million merchant locations and 4,000 financial institutions – along with a worldwide transaction volume of 79 billion – this makes for a pretty powerful partnership.

What other potential benefits does this acquisition offer? According to the same press release, First Data’s recent acquisition of CardConnect (another payments and technology solutions provider) and their ISV capabilities provides a good match for BluePay’s already integrated solutions, with BluePay benefiting specifically from CardConnect’s merchant and partner management tools. The partnership will also enhance First Data’s Enterprise Resource Planning (ERP) offerings. The ERP functionality integrates such areas as planning, purchasing, sales, inventory, finance, marketing and human resources in one management information system.

Also expected to benefit is First Data’s overall product suite with BluePay bringing Member Based Organization solutions that adhere specifically to non-profits and other member-driven associations.

The same press release quotes First Data Chairman and CEO, Frank Bisignano, regarding the acquisition. He says “BluePay is a long-standing First Data distribution partner with an excellent track record of innovation and growth. We are pleased to add BluePay’s unique capabilities and its talented team to the First Data family. We believe BluePay’s best-in-class integrated Card-Not-Present solutions, combined with CardConnect’s cutting-edge ISV product suite acquired earlier this year, clearly sets First Data apart from the competition in the high growth integrated payments space.”

With congruent enthusiasm, BluePay CEO Bala Janakiraman is also quoted as saying “we believe First Data can accelerate our software-driven payments strategy and provide value to clients and partners through the combination of First Data’s payment facilitation capabilities, global processing expertise, and an unparalleled distribution network.”

With such a positive potential impact on the ISV market, we look forward to what this partnership can bring to the payment facilitator space.