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Tecum Capital Announces Investment in CDE Services

CDE Services, LLC, is a leading provider of payment processing solutions (EBT)for convenience stores, grocery stores, and pharmacies.

Pittsburgh, PA – Tecum Capital (“Tecum”) is proud to announce its investment in CDE Services, LLC (“CDE”), a leading provider of payment processing solutions for convenience stores, grocery stores, and pharmacies. The Company announced that it has been acquired by Milestone Partners, a private equity firm that specializes in technology-enabled services and financial solutions. The acquisition is expected to enable CDE to expand its market share and product offerings in the fast-growing integrated payments space.  

Milestone’s acquisition of CDE was supported by a strategic capital investment from an experienced group of investors, including Tecum, LO3 Capital, and Navigate Capital.

CDE provides merchants with a fully integrated solution for a multitude of payment processing needs and various ancillary products via a proprietary technology stack, enabling high margins and superior pricing relative to its industry peers. The Company specializes in electronic benefits distribution (“EBT”) and credit/debit processing for small- to mid-sized merchant customers. EBT is a system that allows state welfare departments to issue benefits via encoded payment methods, which can be used at participating retailers. CDE’s integrated solution also includes other applications such as over-the-counter (“OTC”) insurance product benefits, age verification, and digital couponing. The Company’s omnichannel platform capabilities offer full end-to-end support to a growing recurring revenue base of 24,000 merchants and retailers. CDE also provides customized point of sale device encryption, deployment and activation services for industry leading strategic partners.`

CDE’s specialty market segment is highly fragmented and growing as the rapid expansion of the digital economy in recent years has prompted the adoption of integrated payments in a myriad of verticals outside of traditional financial services such as government, retail, and restaurant & food services. CDE is one of the nation’s most recognizable brands in the EBT processing space with an opportunity to further grow its footprint in the convenience, pharmacy, and quick service restaurant (“QSR”) markets.

James Billmyer, Principal at Milestone, stated: “We are privileged to partner with CDE Services and look forward to working with the existing management team on executing their strategic initiatives.”

Joe Cohane, CEO of CDE said: “Given Milestone’s targeted sector focus on financial technology companies, we are confident that together we will rapidly grow through providing superior merchant payment solutions to our valued customers.”

Stephen Gurgovits, Jr., Managing Partner of Tecum, stated, “CDE has generated a highly defensible market position via its niche EBT focus and investment into superior technical capabilities. We believe the Company is poised to capture additional share through expanded product offerings, and we are excited to partner with management and Milestone for this next phase of growth.”

The Deal Team from Tecum consisted of Matt Harnett, Paul Oris, and Dominic Noel.


Tecum Capital is a Pittsburgh, Pennsylvania-based private investment firm deploying capital in lower middle-market companies. Tecum provides mezzanine debt and equity investments in growth-oriented middle-market companies across the broader high-value manufacturing, value-added distribution, and business services sectors. Our team partners with independent sponsors, family offices, committed funds, business owners seeking succession plans, and management teams to create shared success. Tecum manages two Small Business Investment Company (“SBIC”) licensed funds and is currently investing out of Tecum Capital Partners III, L.P, a $305 million fund launched in September 2021. Since 2006, the team has collectively invested more than $1.0 billion in over 135 platform and add-on acquisitions. For more information, please visit