A consortium of Blackstone Group and CVC Capital Partners has made a $3.71bn bid to acquire payment services provider Paysafe Group.
In a stock exchange filling, Paysafe confirmed that it has received a preliminary offer from Blackstone Group and CVC Capital Partners.
The 590 pence per share all-cash offer represents a premium of approximately 9% to Paysafe’s closing price on 20 July which equates the deal to $3.71bn.
Old Mutual Global Investors (UK), one of the largest shareholders of Paysafe, has sent a non-binding letter of support to Paysafe for the possible offer, in respect of 50,000,000 of the company’s ordinary shares.
Paysafe further clarified that there can be no certainty that an offer will be made, even if the pre-condition is satisfied. The consortium will have to make a firm offer by 18 August. A further announcement will be made in due course, as appropriate.
Paysafe posted an operating profit of $194.4m in 2016 and its annual revenue hit the $1bn mark during the same period, which highlights the future growth potential in this industry.
In a separate statement, Paysafe said that it has agreed to acquire Delta Card Services, the holding company for Merchants’ Choice Payment (MCPS) in a transaction valued at $470m.
MCPS provides card processing services to about 60,000 merchants in 50 states across US and processes over $14bn in sales volume per year.
Paysafe believes that the takeover of MCPS will expand its processing scale and product-set for ISOs and merchants in North America.
Furthermore, the addition of point-of-sale (POS) activities to Paysafe’s Processing division will further consolidate its ability to provide processing for POS, online and order ahead payments all under a single real-time consolidated analytics platform.