Paramax advised 3 Point Alliance, Inc. on the sale of their Financial Services Maintenance Business, including Qwinstar Corporation and 3 Point Alliance Canada Inc., to Sidereal Capital Group, LLC and Ocean Avenue Capital Partners as part of an industry roll-up. 3 Point Alliance, headquartered in Clifton, NJ, is a leading provider of outsourced payment remittance services and maintenance services for mechanical check processing and other financial equipment in the United States and Canada. The Maintenance business is one of the few remaining providers of maintenance service for mechanical check processing equipment in North America for key equipment platforms such as IBM, NCR, and IBML check processing and scanning equipment. 3 Point Alliance retained its outsourced remittance processing business. Paramax and 3 Point Alliance management engineered a plan, along with an industry executive Larry McCarter, to develop a roll-up strategy within the North American financial services maintenance industry. 3 Point Alliance’s Financial Services Maintenance Business was identified as the platform business, and Larry McCarter was tabbed to be the new CEO to lead a roll-up of leading businesses within related niche markets. In addition to 3 Point Alliance’s Financial Services Maintenance Business, Sidereal Capital Group and Ocean Avenue Capital Partners also completed a second transaction at closing. Sidereal Capital and Ocean Avenue Capital have plans to significantly grow the new business through a strategic organic growth plan and additional targeted acquisitions.
