Strategics vie for HIG’s Onyx Payments in auction’s second round

The auction of Onyx Payments has hit the second round, two sources familiar with the situation said.

Strategics including Amadeus IT Group SA, Sabre, Wex Inc and Fleetcor made it past the first round, a source said. Private equity is also in the running but which firm or firms is unclear.

H.I.G. Capital put Onyx Payments up for sale earlier this year, Buyouts Insider has reported. The Miami-based private-equity firm is seeking bids “deep in the threes” — the high $300 million region, the story said. Robert W Baird & Co is advising on the process, Buyouts said.

First-round bids were due about two weeks ago, the source said. Parties needed to offer at least 11x EBITDA to reach the second round, the source said. It’s unclear how much EBITDA Onyx generates.

HIG’s investment in Onyx dates to April 2013, when it acquired Pegasus Financial Services, which processes commissions that hotels pay to travel agencies. Pegasus Solutions Inc was the seller. HIG renamed the company Onyx Payments later that year.

In October 2014 Onyx acquired Net Trans Services of Norway and Worldwide Payment Systems of Spain.

It’s unclear which fund HIG used to invest in Onyx Payments. In March 2013, HIG Capital closed its fifth fund at $1 billion. Fund V produced a -5.75 percent average IRR and a 0.94x average multiple as of September 30, according to data provider Bison.

Executives for Baird, Onyx, HIG, Amadeus, Sabre, Wex and Fleetcor could not immediately be reached for comment.

Action Item: To contact Onyx Payments:

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