BluePay final bids due in October; GTCR drops out

Final bids for BluePay Processing have been pushed to early October, according to two sources.

Offers for the Naperville, Illinois, payment-processing-services provider had been expected in September but were pushed back, one of the sources, a banker, said.

The BluePay auction has undergone a “little bit of a course correction” after Vantiv made its $10 billion deal for WorldPay, sources said. Both WorldPay and Vantiv were seen as potential buyers of BluePay, the person said. “They’re trying to bring others into the process,” the banker said.

TA Associates’ sale of BluePay began in June, Buyouts reported. Credit Suisse and Raymond James are advising. BluePay is expected to fetch $700 million to $800 million, Buyouts said.

Advent International, Onex Corp and TPG Capital are interested in BluePay, sources said. GTCR is out and no longer bidding, a different source said

Among strategics, First Data was mentioned as a possible bidder although it’s unclear whether it is involved.

Elavon, the credit-card processor backed by U.S. Bancorp, is interested in BluePay, one of the sources said. Elavon, Atlanta, is the former NOVA.

BluePay provides payment-processing services for merchants and suppliers in the U.S. and Canada. The company offers services to more than 47,000 businesses and processes $14 billion in transactions annually.

TA acquired BluePay in 2013 for more than $200 million, Buyouts reported at the time. The firm’s investment came from TA XI, which collected $4 billion in 2009.

The growth private equity firm is currently investing out of TA XII, which reportedly raised $5.3 billion in 2015.

Advent, GTCR, TPG and Credit Suisse declined comment. Executives for TA, BluePay, Credit Suisse, Raymond James,  First Data and Elavon could not be reached for comment.

Action Item: Contact BluePay CEO Bala Janakiraman at +1 866-739-8324

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