Francisco Partners makes 5x its money with Paymetric sale

Francisco Partners appears to be making more than 5x its money with the sale of Paymetric Inc.

Vantiv Inc last week agreed to buy Paymetric. Terms weren’t disclosed. Vantiv CFO Stephanie Ferris said on an April 26 earnings call that the acquisition was around $500 million, a spokesman said.

The Paymetric sale was closer to $525 million, sources told Buyouts.

The sale price is much higher than what Francisco Partners paid for the company in 2013.

Paymetric, Atlanta, provides payment-processing-software for corporations. Francisco acquired a majority of Paymetric for $80.5 million in 2013, a Sept. 23, 2013 SEC filing said. This gave Francisco around 80 percent of Paymetric, one of the sources said.

Paymetric’s sale to Vantiv means Francisco stands to reap 5.21x its investment after 3 1/2 years.

Earlier this year, the San Francisco PE firm put Paymetric up for sale, seeking $500 million. William Blair provided financial advice to Paymetric, while Credit Suisse advised Vantiv. At the end, Vantiv beat out two buyout shops to win Paymetric, one person said. It’s unclear who the sponsors were.

Francisco Partners invests in technology and technology-enabled businesses. Last month, Francisco invested $140 million in R2Net, the parent of JamesAllen.com, an online retailer of engagement rings and loose diamonds. One of the firm’s more notable deals came in 2016. Francisco, along with Elliot Management, acquired Dell Software Group from Dell Inc. The price wasn’t disclosed.

The firm’s last flagship fund, Francisco Partners IV LP, collected $2.88 billion in 2015. Franciso’s prior pool collected $2 billion in 2011.

Dan Daul led the William Blair deal team, which included Dan Connolly and Spencer Crawford. Kirkland & Ellis provided legal advice to Paymetric. Brian Gudofsky of Credit Suisse advised Vantiv.

Francisco and Paymetric could not be reached for comment.

Action Item: Contact Paymetric President and CEO Asif Ramji: +1 678-242-5281

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