- Crossroads Systems (OTCQX:CRSS) is merging with Rise Line Business Credit, an asset-based lending firm that provides working capital solutions.
- Under the agreement, which was approved by Crossroads' board, the purchase price for the transaction was ~$10M in cash.
- Through the transaction, Crossroads expects it will be able to provide better accessibility to banking for small businesses and assist in their transition into the conventional banking system.
- The merger also expands Crossroads' impact product offering to small businesses that are in asset-heavy sectors such as manufacturing, distribution, retail and consumer products, business services, staffing, and technology services.
- "This merger enables us to expand our organization into an adjacent competency and diversify our product offering to small businesses across a range of industries," said Eric Donnelly, CEO, Crossroads.
- Donnelly further noted: "Rise Line has a scalable platform that offers customized loan structures and optimal solutions to its customers to achieve their capital goals."