Online-payments group Paysafe is to be acquired by private-equity firms Blackstone and CV Capital Partners in a deal worth just under £3bn.
Paysafe said it was recommending shareholders approve the all-cash offer for the company in which Blackstone and CV Partners will pay 590p per share.
Rising M&A activity
Private-equity firms appear to be increasingly targeting the online payments sector due to its strong growth prospects as consumers make more purchases online and switch spending away from traditional high street shopping.
The digital online payments company first revealed the bid from the private-equity duo last month.
It is the latest in a series of mergers and acquisitions (M&A) deals in the fast-growing sector, and closely follows the £9bn offer for UK-listed payments group Worldpay from New-York listed Vantiv.
There is also the recent €1.5bn acquisition of Swedish payments firm Bambora by France´s Ingenico Group.
Paysafe said its directors were unanimously recommending the £2.96bn offer for the company, describing the terms of the acquisition as “fair and reasonable”.
Old Mutual Global Investors, the payments company´s biggest shareholder has already recommended the offer.
Paysafe shares were 0.8% higher today, trading at 597p. The stock has risen by around 40% over the past few months.
Online gaming boost
While payments related to online gaming make up around 45% of Paysafe´s business, it has been targeting further growth through its recent $470m acquisition of US payments group Merchants Online.
Robust growth in online gambling transactions has helped Paysafe grow its revenues by around 600% since 2011.