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Published: Mon, July 24, 2017
Economy | By Melissa Porter

Paysafe lands all-cash offer from Blackstone, CVC

Paysafe lands all-cash offer from Blackstone, CVC

Two of the world's largest private equity groups have made a $3.7bn (£2.8bn) takeover offer for card processing firm Paysafe.

Earlier this month U.S. credit card processor Vantiv made a £7.7bn bid for Britain's Worldpay, while Danish payment services firm Nets A/S revealed it had been approached by potential buyers.

The proposed all-cash offer has been on the table since early May and subsequent negotiations have led to a potential offer of 590 pence per share.

That has since been followed by a €1.5 billion (RM7.4 billion) bid yesterday for Stockholm-based Bambora by France's Ingenico, and, today, news that private equity company Permira had bought a stake in Klarna. Old Mutual holds approximately 50.0 million Paysafe shares, 10.3% of its current issued share capital.

The company, which was founded in 1996 and processes payments for merchants and online payment services, said in a filing that Blackstone and CVC made their initial approach in early May. The bidders had until 18 August to confirm their bid.

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.

In a separate statement, Paysafe said it has agreed to acquire Delta Card Services, the holdings company for Merchants' Choice Payment Solutions, a payment processor based in Shenandoah, Texas.

"We would initially highlight that on first impressions the acquisition appears to make sense, (but) is not a particularly high multiple in the context of payments", UBS's Mulholland said in a note to clients, flagging a "buy" rating.

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