Equity fund targets €110m for sale of payments firm
Electronic payments business Payzone has been put on the market by private equity fund Carlyle Cardinal Ireland (CCI) and is expected to fetch between €90m and €110m, it has emerged.
The global corporate finance adviser Arma Partners has been appointed to handle the process.
It is understood that the sale process was triggered by an unsolicited approach for the business and there is strong interest from both trade and non-trade buyers.
An international buyer is likely for the company, sources have said.
CCI, which is backed in part by the Irish state, bought Payzone in 2015 for €39m and the sale is expected to more than double that initial purchase price.
Payzone chairman Mike Maloney and some other members of senior management also have a small stake in the business.
Last year the company agreed a new debt finance deal with lender Ulster Bank, which was seen as paving the way for an early payout for CCI.
Founded in the 1980s, the company handles over one billion transactions annually.
When CCI bought the business it had an EBITDA of around €6m but changes in shopping habits have sparked significant growth for Payzone since 2015.
The fund has begun to exit some of its investments. In March, CCI exited its majority stake in cash-in-transit firm General Secure Logistics Services.