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Published: Sun, July 23, 2017
Economy | By Melissa Porter

Online payments company Paysafe receives £2.9bn approach from Blackstone and CVC

Online payments company Paysafe receives £2.9bn approach from Blackstone and CVC

Paysafe Group PLC (LON:PAYS) shares jumped after the online payments firm said it has received a conditional, all-cash, takeover offer from Blackstone and CVC Capital Partners at 590p per share, valuing the business at £2.9bn.

A series of deals in the sector has driven share prices higher in recent weeks.

Earlier this month Worldpay, Britain's largest payments processor, announced that it had accepted a £7.7bn takeover offer from United States credit card provider Vantiv.

Vodafone shares rose 1.6% after its latest trading update.

Shares in Paysafe were up 7.4 percent to 582.5 pence a share at 0955 GMT, leading the gainers in Britain's mid-cap index but slightly below the 590 pence per share proposed offer price.

If successful, the bid would mark a return for CVC, which previously owned Skrill, a payments company bought by Optimal Payments, the AIM-listed forerunner to Paysafe.

Under UK rules, Blackstone and CVC have until August 18 to announce a firm intention to make an offer. Lazard are lead advisors to Paysafe, while Credit Suisse is working with CVC. The funds initially approached the board of Paysafe in May and had made a number of indicative proposals since then, Paysafe said.

The group said the funds have indicated their financing requirements will be funded in part through the disposal of any business the it considers to be non-core, such as its Asia Gateway business.

Delta is the holding company for Merchants' Choice Payment Solutions, a payment processor for merchants and independent sales organisations and is based in Shenandoah, in the U.S. state of Texas.

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