FTV posts latest big exit with WePay

With the sale of WePay, FTV Capital has scored its latest big exit.

JP Morgan Chase said late Monday that it agreed to buy WePay, the online payment provider. Financial terms weren’t announced but a source said the Palo Alto, California, company sold for $350 million to $400 million. Buyouts reported in July that WePay had hired Goldman Sachs to review options.

“We aren’t disclosing terms,” said Mary Jane Rogers, a JP Morgan Chase spokeswoman, in an emailed response.

WePay’s technology lets business app makers and software vendors more easily integrate payments into their businesses. GoFundMe, FreshBooks and Constant Contact use WePay’s software. The company has raised $74.2 million through six rounds of funding, Crunchbase said.

The deal is JP Morgan’s first major acquisition of a financial-technology company, Reuters said. Last week, JP Morgan, along with Temasek, led a $100 million financing round for Bill.com.

The WePay sale is the latest example of a large strategic scooping up a payments company. In August, Vantiv made a $10 billion offer for WorldPay, while that same month Paysafe bought Delta Card Services, the holding company for Merchants Choice Payment Solutions, for $470 million. (Blackstone and CVC Capital Partners agreed to buy Paysafe for $3.9 billion, also in August.) First Data closed its $750 million buy of CardConnect in July, while Vantiv acquired Paymetric earlier this year from Francisco Partners.

FTV’s investment in WePay dates to 2015 when the firm led a $40 million round for the company. Other investors included Rakuten, Highland Capital Partners, August Capital, Continental Investors and Ignition Partners.

The WePay sale follow’s FTV’s exit of CardConnect earlier this year. FTV made 6x to 7x its money with the sale of its remaining stake in CardConnect, Buyouts reported.

In August, FTV also sold CashStar, a provider of gift card commerce services, to BlackHawk Network Inc for $175 million. FTV led a $12 million round for CashStar in 2011.

FTV, with offices in San Francisco and New York, is a growth equity firm. Launched in 1998, FTV invests in sectors including enterprise technology and services, financial services, as well as payments and transaction processing. The firm is investing out of its fifth fund, which collected $850 million last year.

Executives for FTV declined comment. WePay did not respond to messages for comment.

Action Item: Contact Chris Winship, an FTV partner, at +1 415-229-3000

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