Blackhawk Network Holdings, a US fintech outfit specialising in prepaid gift cards, has agreed to be acquired by PE firm Silver Lake and hedge fund P2 Capital Partners in an all-cash deal worth around $3.5 billion.
Under the deal, which includes Blackhawk's debt, the firm's shareholders will receive $45.25 per share in cash, a premium of 24% over the 12 January closing price. Silver Lake has made a $1.7 billion equity commitment.
Blackhawk operates a physical and digital gift card and prepaid payments network, connecting more than 1000 brands to nearly a quarter of a million retail distribution locations and online channels.
Blackhawk's board has approved the merger agreement - which keeps the current management team in place - and is recommending it to stockholders. The deal is slated to close mid-2018.
Talbott Roche, CEO, Blackhawk, says: "Silver Lake and P2 Capital Partners bring the long-term focus, financial resources and technology expertise that can enable us to accelerate growth initiatives globally and reach the company's full potential."
Shares in Blackhawk rose more than 23%, to $44.95, on the news.