Madison Dearborn’s Stake Values EVO at $750 Million: UPDATED

It looks like Madison Dearborn Partners‘ investment in EVO Payments International is pretty sizeable.

Earlier this week, EVO said MDP had acquired a minority stake in the company. I’m hearing that the transaction was valued at $750 million. EVO is also producing EBITDA of about $75 million to $85 million, peHUB has learned. This puts the multiple for the deal at 9x-10x. UPDATE: A different source says the investment values EVO at $750 million.

Chicago-based Madison Dearborn typically doesn’t invest less than $100 million per deal, a banker says. “It has to be a sizeable company for them to invest in,” the source says. Ray Sidhom, EVO’s founder and chairman, continues to own a majority of the company.

Melville, N.Y.-based EVO is a payments processor and acquirer for merchants, independent sales organizations (ISOs), financial institutions, government organizations, and multinational corporations. EVO recently made two acquisitions: PowerPay, of Portland, Maine, and Deutsche Card Services, of Cologne, Germany.

One of EVO’s more notable transactions occurred in November. James Kelly, Global Payments former president and COO, joined EVO as their CEO. Kelly is considered a heavyweight in the payments community.

Madison Dearborn produced some significant exits in 2012, including the sales of BWAY, Bolthouse Farms and its stake in TransUnion. MDP returned $3.3 billion to clients in 2012, Bloomberg has reported.

Madison Dearborn Partners’ last fund, which collected $4.1 billion in 2010, is producing a net IRR of 11.02%, according to June 30 data from the Washington State Investment Board. The fund was expected to be 58% invested by the end of 2012, Bloomberg said last week, citing an MDP year-end letter to investors.

Madison Dearborn declined comment beyond the EVO press release. Officials for EVO couldn’t be reached for comment.

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