By Getahn Ward / Staff Writer

Rich Roberts successfully built PMT Services Inc. from a fledgling startup in 1984 into a public company before the Nashville-based credit-card transaction processor was acquired in September 1998.

Now, he finds himself atop another fledgling enterprise with big-name investors. This time, he's aiming to ride the electronic commerce boom. 

Roberts became chief executive officer when Link2Gov.com, based in Florida, merged with G-Link Corp., a Nashville-based company Roberts has headed since last fall. The new company, bearing the Link2Gov.com nameplate, will be based in Nashville.

The company recently raised $3.6 million in venture capital from private investors including Michael Armstrong, AT&T Corp.'s chairman, and Kenneth A. Fox, a co-founder and managing director with Wayne, Pa.-based Internet Capital Group, a holding company for several electronic commerce firms.

Link2Gov.com is seeking to boost its tiny share of the $450 billion-plus business of helping government agencies automate renewals of licenses and collecting revenues other than income taxes. To understand its business, imagine paying a parking ticket, renewing your driver's license or paying taxes by telephone or online for a fee, instead of standing in line or mailing in a check.

A mandate from Congress that government agencies embrace e-commerce to cut costs has Uncle Sam going high-tech. Companies such as Link2Gov.com are vying to be the middleman that connects him to you. 

"The idea is to bring down the administrative costs of processing such items as filing fees, drivers' license fees and to give the consumer a better experience in general," said Timothy Getz, analyst with Prudential Volpe Technology Group in San Francisco.

A rush by competitors to sign exclusive deals with state governments, however, makes time a precious commodity for companies such as Link2Gov.com. 

Two leading players -- National Information Consortium and Official Payments Corp. -- went public last year to boost the amount of money available for their growth. 

"Right now these companies are in a land grab," Getz said. "The companies that are the most highly capitalized, that can afford to hire a lot of sales people, are the ones that will win."

Roberts recognizes the challenges ahead, but remains confident about Link2Gov.com's prospects. 

"Somebody's going to succeed in defining this industry," he said, adding his company has the management and marketing talent it takes to become a key player.

Roberts' track record with publicly-traded PMT Services should help Link2Gov.com's prospects, said Mark Hughes, a SunTrust Equitable Securities analyst. The company grew its revenues from $12.7 million in 1990 to $284 million for fiscal 1997 before being acquired by Atlanta-based Nova Corp.

"The company always hit earnings targets and never disappointed," said Hughes, who followed PMT Services until it was acquired.

"He (Roberts) established a lot of credibility with the market and investors. That should carry over with any new venture he's involved in."

If market conditions remain positive, Link2Gov.com plans to pursue an initial public offering soon, Roberts said.

"I swore I would never run a public company," Roberts said of his thought after selling PMT Services. "But then companies started being valued by a multiple of revenues rather than earnings."

Internet companies remain popular with investors even when companies fail to make a profit. Still, to go public, Link2Gov.com will have to grow its revenues fast. Roberts expects revenues of $8 million to $10 million this year.

The company plans to grow its staff of 24 to 35 soon, he added.

Link2Gov.com already has relationships with government agencies in seven states. Its key areas of business include automating driver's license and vehicle registration renewals and collection of parking ticket payments; renewals of hunting and fishing licenses; and renewals of various state licenses by professionals in industries such as banking and real estate. 

In Florida, residents can call Link2Gov.com's automated voice system to renew licenses. Payments are made by credit card or another electronic method. Link2Gov.com gets a $3-$5 fee.

The Florida contract was G-Link's first deal, landed about 3-1/2-years ago. It has handled 600,000 to 700,000 driver's license renewals. Now, 17% of all renewals are handled through the company, officials said. 

With the merger, G-Link got both a name that better reflects its business and filled key positions on its management team, Roberts said. Larry Wine, former president and chief executive officer of Link2Gov.com, has become president of the post-merger Link2Gov.com.

The former G-Link traces its roots to an idea pitched to Mark McDonald, a Nashville real estate developer, about five years ago by Nollie Peeler, currently Link2Gov.com vice president for business development. The company initially was known as Concord Communications.

After PMT Services was acquired, McDonald said he began pitching the idea to Roberts about heading up G-Link.

Roberts sees some similarities between PMT Services and Link2Gov.com. Each is based on charging customers by the transaction, and like PMT Services, Roberts plans to grow Link2Gov.com at least partly through strategic acquisitions.

But dealing with Uncle Sam requires more patience and flexibility than with private enterprise.