Digital River seeks buyer for Beanstream

Digital River Inc, just months after being bought by Siris Capital Group, has put subsidiary Beanstream on the block, two sources said.

It’s unclear who is advising on the sale. Beanstream, of Victoria, B.C., provides payment, risk management and authentication solutions to companies and institutions in North America. The company produces $5 million to $7 million in annual EBITDA, the sources said.

First round bids for Beanstream were due last week. Digital River will select which parties move into the second round this week, one of the sources said.

Digital River acquired Beanstream in January 2013 when it bought LML Payment Systems and its subsidiaries Beanstream Internet Commerce Inc in Canada and Beanstream Internet Commerce Corp in the U.S., according to Beanstream’s website. Digital River paid $97.4 million in cash for LML, according to a report at the time.

In February, Siris Capital completed its buy of Digital River in a deal valued at $840 million. Minnetonka, Minn.-based Digital River provides payments and marketing services.

Siris Capital in February closed fundraising for its third pool, which raised $1.81 billion. The firm targets established mid-market technology and telecom companies with revenue between $100 million and $1 billion, Buyouts has reported.

Officials for Siris, Digital River and Beanstream could not immediately be reached for comment.

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