Blackstone/CVC agree £2.96 billion deal for Paysafe

Blackstone/CVC agree £2.96 billion deal for Paysafe

The private equity industry's appetite for blockbuster payment deals shows no signs of abating as Blackstone and CVC agree a £2.96 billion deal to acquire online payments company Paysafe.

Under the terms, each Paysafe Shareholder will be entitled to receive 590 pence per share, a 42% premium over the group's average value over the past year.

The deal will give Blackstone and CVC exposure to the online gambling industry, a significant business sector for Paysafe whose pre-paid digital wallet facilitates bets without taking money from bank accounts.

Paysafe's merchant services businesses in Asia will be split off and sold to Spectrum Global Limited for approximately $308 million. Neteller, the FCA-registered online payments arm of Paysafe's merchant operations, will remain under the Blackstone/CVC hood.

The acquisition, which is expected to complete in the fourth quarter of 2017, follows a spate of billion dollar deals in the payments processing industry, spurred by the promise of cash-generating growth in online and mobile payments.

Martin Brand, senior managing director of Blackstone, says: “As a leading technology investor, Blackstone believes that Paysafe is an ideal platform for continued innovation in the payments space, and look forward to supporting Paysafe's growth both organically and through acquisitions.”

Comments: (0)