HIG puts Onyx Payments on the block: sources

HIG Capital is seeking a buyer for Onyx Payments, according to sources.

The Miami-based private equity firm is seeking bids “deep in the threes” — high $300 millions, said one of the sources, a banker. Robert W Baird & Co is advising on the process, sources said.

First-round bids are due soon, the banker said.

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

Onyx, in October 2014, 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.

HIG Capital declined comment. Baird and Onyx Payments couldn’t be reached for comment.

Mergermarket first reported news of the Onyx Payments auction.

Action Item: To contact Onyx Payments call 214-396-3280.

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