GTCR, strategics drop out of Paymetric auction: sources

Strategics are out of the running for Paymetric, a Francisco Partners portfolio company that’s up for sale, four sources said.

Vantiv and SAP are no longer bidding for Paymetric, two sources said. GTCR, a veteran investor of financial-technology companies, has also dropped out, a fifth source said. Onex Corp, General Atlantic and Welsh, Carson, Anderson & Stowe are still involved in the process, people said.

Paymetric received a “ton of interest at very high prices,” the fifth person said.

CardConnect’s status is unresolved. The King of Prussia, Pennsylvania, payment processor has a $393 million market cap and is still deciding whether to go forward, the fourth person said. One source said CardConnect might find it tough to bid since “Francisco is looking for all cash.”

Francisco Partners put Paymetric up for sale in February, seeking $500 million. William Blair is advising on the deal, Buyouts has reported. The auction is in the second round with final bids expected in April.

Onex, Toronto, is one of Canada’s largest buyout firms. Earlier this month, Onex agreed to sell USI Insurance Services to KKR and Caisse de dépôt et placement du Québec for $4.3 billion.

Paymetric, Atlanta, provides payment-processing-software for corporations. Francisco acquired a majority of Paymetric in 2013. The sellers at the time included Palomar Ventures and Austin Ventures.

Executives for SAP, Vantiv, Francisco, William Blair and GTCR declined comment. CardConnect, Onex, Welsh Carson and General Atlantic could not be reached for comment.

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

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