Big private equity firms interested in DH Corp: sources

The auction of DH Corp, the Canadian financial-technology company, is attracting mainly private equity bidders, three sources said.

DH held management presentations last week, sources said. On Dec. 7, DH confirmed that it had formed a special committee of independent directors to address “expressions of interest” from third parties to buy it. DH said it hired Credit Suisse and RBC Capital Markets to run the auction.

“[DH wants] to get the deal done by end of first quarter,” one source said.

It’s unclear exactly who is involved but the sale has attracted large-cap PE, sources said. Firms including Vista Equity Partners, Welsh Carson, Anderson & Stowe, GTCR, Lindsay Goldberg and Hellman & Friedman have invested in the payments sector.

Also unclear is how much DH is seeking. The company has a $2.52 billion market cap. DH shares have plunged 41 percent from a 52-week high of $40.22 hit April 19. DH’s stock closed at $23.70 Friday on the Toronto Stock Exchange.

DH, Toronto, was founded in 1875 as Davis & Henderson. The company provides fintech services to North American banks and credit unions. DH produces more than $1.5 billion in revenue annually and employs more than 5,500.

Since 2005, DH has made several acquisitions, including the $1.25 billion buy of Fundtech in 2015, which offers payment services to banks globally.

Credit Suisse declined comment. DH and RBC could not immediately be reached for comment.

Action Item: Contact Gerrard Schmid, DH’s CEO: +1 416-696-7700

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