The ComVest Group has completed its $81 million acquisition of bankrupt-Cynergy Data's assets. The company is a provider of merchant payment processing and credit card services. ComVest won the bankruptcy auction for the company earlier this month, for which it had been named the stalking horse bidder. The company will emerge from bankruptcy with a much lower cost structure and a balance sheet strengthened by a $35 million investment from ComVest.
Cynergy is the sixth bankrupt company acquired by private equity investors in October and the 34th in 2009, according to the PitchBook Platform. In total, PE firms have spent over $4 billion acquiring bankrupt companies in 2009. The most popular industries have been automotive with 5 deals, followed by retail with 3 - both of which are two of the hardest hit industries in the current recession. October has been the busiest month for bankruptcy deals and includes one of the biggest this year with The Carlyle Group-led acquisition of Metaldyne for $440 million. This trend is likely to continue as more companies file for bankruptcy and PE firms use some of their $400 billion of dry powder to pick up good companies and brands at bargain prices.