Paysafe Group has today (Friday) announced that it has received a preliminary offer from a consortium featuring Blackstone and CVC Capital Partners regarding an offer for the company, while the firm has also agreed to acquire Delta Card Services.
In a statement, Paysafe said the consortium proposal includes plans for an all-cash offer for the entire issued and to-be issued share capital of the firm, by a “newly incorporated company” jointly owned by funds advised by consortium members or their respective affiliates.
Paysafe shares were up around 8% on the news this morning.
Paysafe said it was first approached over a possible deal back in May and having already turned down a number of proposals, then granted due diligence access on the basis of a possible offer of 590 pence (€6.57/$7.66) per share.
Each Paysafe shareholder would receive 590 pence for each ordinary share they have in the firm, with the consortium indicating that financing requirements will be funded in part with the proceeds of a disposal of any business it considers to be “non-core”.
Old Mutual Global Investors, the largest shareholder in Paysafe, has sent a non-binding letter of support in favour of accepting the bid, although Paysafe has stressed that there is no certainty that an actual offer will be made.
Meanwhile, Paysafe has also confirmed that is has agreed a deal to acquire Delta Card Service, the holding company of US-based payment processor Merchants’ Choice Payment Solutions (MCPS) for $470m.
The consideration is payable in cash and will be funded by a $380m incremental loan facility, with Paysafe expecting to close the transaction before the end of the third quarter.
Todd Linden, who currently serves as chief executive of MCPS, will remain with the company as part of Paysafe’s North America Processing operations, while chief financial officer Giovanni Diano will also remain with the combined firm.
For the year ended December 31, 2016, MCPS reported revenue of $446m and earnings before tax of $18.4m.