February 6, 2017
By Kevin Woodward
The cofounders of Revel Systems, an early maker of iPad-based point-of-sale systems, have left the company following a fresh investment by private-equity firm Welsh, Carson, Anderson & Stowe, which has long been active in the payments industry.
The press release from Welsh does not say why cofounders Lisa Falzone, who was chief executive, and Chris Ciabarra, chief technology officer, left the company they started in 2010, or what their next steps might be.
The New York City-based investment firm did not disclose the amount of this financing, but in 2014 it invested $65 million in Revel and extended the San Francisco-based company a $25 million credit line. The Welsh, Carson deal comes six months after IBM Corp. was reported to be in early talks to buy Revel.
Scott Betts, who most recently was chief executive at Everi Holdings Inc., formerly Global Cash Access Holdings Inc., is Revel’s new chief executive.
Falzone and Ciabarra were praised for their efforts. “Revel’s founders have shown great vision and determination in building the company,” said Eric J. Lee, general partner at the investment firm, in a press release. “Looking forward, we believe that there is significant market potential for Revel’s leading cloud-based POS solution, and WCAS is excited to fund and catalyze this next phase of Revel’s growth and success.”
Some of Welsh’s other payments investments have involved processors Alliance Data Systems, Card Establishment Services, and TransFirst, which sold a year ago for $2.35 billion to Total System Services Inc. (TSYS). Welsh sold its TransFirst stake in 2014 to Vista Equity Partners.
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