Private equity nearly shut out of Repay auction: source

  • Corsair acquired Repay in 2016
  • 5 strategics, 2 SPACs, 1 buyout shop vie for Repay: source
  • PayPal agreed to buy Hyperwallet for $400 mln

Private equity has been nearly shut out of the auction for Realtime Electronic Payments, or Repay, according to a source.

First-round bids for Repay were due June 22 at 5 p.m., the person said. The auction attracted 16 private equity firms; those that bid below $700 million were kicked out, the source said.

Only one buyout shop remains and it’s rebidding, the person said. The PE firm is vying against five strategics and two SPACs, the source said.

Repay is backed by Corsair Capital, the veteran financial-services PE firm. Financial Technology Partners is advising on the process, Buyouts reported earlier this month.

Repay generated Ebitda of around $45 million and could sell for $900 million, including debt, the story said.

Established in 2006, Repay, Atlanta, provides electronic-transaction-processing services for more than 8,000 merchants, including credit and debit cards, gift cards, ACH, and bank-account verification. Corsair acquired Repay in 2016.

News of the auction comes as Corsair is out fundraising for its latest flagship. The firm is seeking $1 billion with its fifth fund, Buyouts reported in November. Corsair has raised $469.4 million so far for Fund V, according to an SEC filing dated June 21.

Repay is the latest payments auction to see PE firms get shut out. Six private equity firms were interested in Hyperwallet Systems but lost out after an unknown strategic swooped in and acquired the payments company, Buyouts reported in May. In June, PayPal emerged as the winning buyer for Hyperwallet, paying $400 million.

Repay could not be reached for comment. Executives for Corsair declined comment.

Action Item: Contact Repay CEO John Morris at +1 404-504-7472