Private equity expected to eye Francisco Partners’ Paymetric sale

Middle-market private equity firms are expected to vie for Paymetric Inc, the electronic-payments-software firm put up for sale by Francisco Partners.

William Blair is advising on the Paymetric auction, which is in the early stages, four people with knowledge of the process told Buyouts. Francisco Partners is seeking $500 million for Paymetric, the people said.

Middle-market-buyout shops like GTCR as well as larger firms like Warburg Pincus could be interested in Paymetric, the people said. Strategics such as SAP and Oracle will likely look at Paymetric, while payments companies like Vantiv and TSYS may also be interested, the people said.

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

Francisco Partners, of San Francisco, invests in technology companies. The firm’s last flagship fund, Francisco Partners IV LP, collected $2.88 billion in 2015. In 2016, Francisco closed its Agility fund, a pool to invest in smaller tech deals. Agility closed with $600 million in October.

News of the Paymetric auction was reported by Mergermarket.

Executives for Francisco and GTCR declined comment. William Blair and Paymetric could not be reached for comment.

Action Item: Contact Peter Christodoulo, a Francisco partner, at christodoulo@franciscopartners.com 

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