CVC and Blackstone in £3bn for Paysafe

Aprivate, the consortium behind CVC Capital and Blackstone, has announced its plans to takeover Paysafe in a £3bn takeover bid.

Aprivate equity consortium has launched a £3bn takeover bid for the gaming-centric payments firm, Paysafe.

The consortium includes both CVC Capital – which is already heavily invested in gaming firms: SkyBet, Tipico and Sisal – and Blackstone, which made its foray in the gaming business with the £600m acquisition of Clarion Events, also in July.

In 2014 CVC also held a stake in Skrill, but which is now a Paysafe company. The move signals not only a growing interest in payments companies among big financial groups, but the maturing reputation of the gaming industry, attracting more private equity investors.

“There’s new phenomena coming into the sector, with private equity taking a wider interest,” said KPMG’s Russell Kelly. “Interest from PE changes the dynamic, bringing greater confidence for people wanting to invest.”

Isle of Man-based Paysafe focuses heavily on the online gaming industry, from which it generates more than 45 percent of its business.

The consortium has until 18 August to make their final bid; Paysafe shares rose 8 percent with the announcement on 21 July.