LONDON: Online-payments company Paysafe Group PLC said Friday it has reached an agreement to be acquired for GBP2.96 billion ($3.89 billion) by private-equity groups Blackstone Group LP and CVC Capital Partners, the latest big deal in the fast-growing sector.
Blackstone and CVC will pay 590 pence a share for Paysafe, the company said, a month after it announced that the buyout firms had made an approach.
The online-payments sector is growing as consumers are increasingly paying for goods and services online with smartphones and other mobile devices instead of cash. At the same time, it is under pressure to consolidate to cut costs amid greater regulatory scrutiny and rising competition that risks squeezing fees.
The deal comes a month after Vantiv Inc. agreed to acquire the U.K.’s Worldpay Group PLC for $10 billion in a deal that would create a trans-Atlantic payments giant with a combined market value exceeding $20 billion.
The acquisition of Paysafe will give Blackstone and CVC significant exposure to the online gambling and gaming sectors. A big part of the company’s business is its digital-wallet technology, which allows users to make bets online without tapping money from their bank accounts.