By David French and Milana Vinn
NEW YORK (Reuters) – Private equity firm Genstar Capital is in advanced talks to buy a significant stake in AffiniPay in a deal that could value the payments processor at nearly $3 billion including debt, according to people familiar with the matter.
A deal is expected to be announced in the coming weeks, if the talks do not fall apart, the sources said on condition of anonymity because the discussions are confidential.
AffiniPay’s current owner, buyout firm TA Associates, will continue to hold a significant stake and will jointly control the company with Genstar as part of the deal, the sources said.
TA Associates acquired Austin, Texas-based AffiniPay for an undisclosed amount from investment firm Great Hill Partners in 2020.
A Genstar spokesperson declined to comment. TA Associates and AffiniPay did not immediately respond to requests for comment.
The proposed AffiniPay deal comes as dealmaking involving buyout firms is picking up after a dismal 2023. Global leveraged buyout volumes jumped 41% to $286 billion during the first half of 2024, according to data from Dealogic.
Founded in 2005, AffiniPay is a provider of software that helps professionals such as accountants, architects, and lawyers process payments at their firms. In 2023, the company helped facilitate more than $20 billion of payments across its platform, according to its website.
(Reporting by David French and Milana Vinn in New York; Editing by Jamie Freed)
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