Financial terms weren’t announced but GTCR typically invests $100 million to $350 million per deal. The buyout shop is acquiring a controlling stake, while BankServ’s management will also have a holding.
Bank of Montreal, SunTrust Robinson Humphrey, and Silicon Valley Bank are provided debt financing, according to a statement from GTCR.
The deal is expected to close by the end of August.
BankServ, of Las Vegas, is an electronics payments developer. BankServ provides money transfer and payment technology that helps banks serve their corporate customers. BankServ employs nearly 200 people and has annual revenue of $60 million. Existing management will remain the same, according to a separate statement from BankServ.
While not an auction, BankServ is believed to have sold for a rich multiple. Collin Roche, a GTCR principal, says BankServ produces double digit EBITDA. “We’re willing to pay fair value for a quality business,” Roche says.
Neither GTCR nor BankServ used outside investment banks. Negotiations to buy BankServ began last year, Roche says. “We’ve been working on this for a long time,” he says. “We’re looking forward to using this as a platform for acquisitions going forward.”
The investment in BankServ came from GTCR’s tenth fund, which raised more than $3.25 billion earlier this year.
GTCR has made several investments in financial technology. In July, GTCR and BONY announced they would sell ConvergEx to CVC Capital Partners for about $2 billion. GTCR has also invested in Palladium Financial and PrivateBancorp.