19 August 2017
visit www.avoka.com

Yet more deals announced in payments sector

21 July 2017  |  13486 views  |  0 Buy Road sign

Investors' interest in the payments sector continues to intensify with today's news that three of the largest private equity firms in the world have made bids to acquire stakes in payment providers.

Two PE firms Blackstone and CVC Capital Partners have bid £2.9bn to acquire US-based payment processor Paysafe. Meanwhile, London-based Permira has bought a 10% stake in Swedish payments startup Klarna at a cost of £250m.

These deals come the day after French payment provider Ingenico acquired another Swedish payments firm Bambora for £1.5bn.

Many more deals have been announced in the last month, including a £7.7bn bid for UK-based Worldpay from US credit card processor Vantiv as well as reported bids for Danish payment provider Nets.

Paysafe had initially been approached by a consortium back in May. Since then it has seen its share price rise from 450p per share to 582p and the Blackstone/CVC bid values each share at 590p, a premium of 30% based on its May share price and a reflection of just how highly rated the sector currently is by investors.

The bid has the support of Paysafe's largest current shareholder Old Mutual Global Investors and Blackstone and CVC have until August 18th to make a formal bid.

The deal for Klarna comes after the Swedish startup was awarded a banking license by the Swedish financial authorities in June. 

The appetite for all things payments-related has been attributed to the growing trend for consumers to eschew cash as a means of payment in favour of their smartphones and other mobile devices. 

The current spate of deals was arguably started back last year when MasterCard acquired UK-based Vocalink for £700m.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Payments sector hots up as Ingenico agrees $1.5 billion deal for Bambora

Payments sector hots up as Ingenico agrees $1.5 billion deal for Bambora

20 July 2017  |  6870 views  |  1 comments | 9 tweets | 17 linkedin
Worldpay and Vantiv agree £9.1 billion merger

Worldpay and Vantiv agree £9.1 billion merger

05 July 2017  |  9484 views  |  1 comments | 18 tweets | 21 linkedin
Visa invests in Klarna

Visa invests in Klarna

27 June 2017  |  10592 views  |  2 comments | 24 tweets | 19 linkedin
BBVA steps up fintech acquisition strategy with purchase of Openpay

BBVA steps up fintech acquisition strategy with purchase of Openpay

25 April 2017  |  11670 views  |  1 comments | 22 tweets | 18 linkedin
MasterCard agrees £700m VocaLink acquisition

MasterCard agrees £700m VocaLink acquisition

21 July 2016  |  16633 views  |  15 comments | 36 tweets | 38 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.abe-eba.euvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
7944 views comments | 22 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7383 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
6193 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6099 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
5941 views comments | 11 tweets | 9 linkedin

Featured job

Find your next job