Payment Alliance Goes Up for Sale

Payment Alliance International is up for sale and expected to draw bids from middle market private equity firms, three sources say.

Louisville, Kentucky-based Payment Alliance has two lines of business. The company provides payment processing services for businesses. Payment Alliance also deploys ATMs and provides processing, maintenance services, equipment sales and support for ATMs. Payment Alliance produces about $25 million EBITDA, one banker says.

Bank of America Merrill Lynch is advising on the auction. Private equity firms, including GTCR, Warburg Pincus, Summit Partners, TA Associates, JLL Partners, and Genstar Capital, are expected to be interested in Payment Alliance, sources say.

Strategics may also bid for Payment Alliance. However, the most likely buyer, Vantiv, acquired Litle & Co. for $361 million  in December. Cardtronics is also mentioned as a possible acquirer, persons say.

Sources cautioned that Payment Alliance’s two business would make it hard for one buyer. Cardtronics could be interested in the payment processing side of Payment Alliance but not the other group, sources say. “There is no natural buyer for [all of Payment Alliance] but it’s a good PE play,” a second banker says.

Timing of the auction has also come into question. Alliance Payment has been up for sale for several months, two sources say. A different person says the auction began in the fall.

BofA Merrill declined comment. Officials for Payment Alliance could not be reached for comment.

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