Silver Lake Buys Mercury Payment Systems

Silver Lake Partners has acquired a 60% stake in payment processing company Mercury Payment Systems, for an undisclosed amount.


Financial Technology Partners LP and FTP Securities LLC (together, “FT Partners”), is pleased to announce another landmark transaction in the Payments and Financial Technology sector, serving as exclusive strategic and financial advisor to Mercury Payment Systems (“Mercury”) in its sale of a 60% strategic interest to Silver Lake Partners (“Silver Lake“).  Mercury is one of the fastest growing payment processors in the industry and has become one of the dominant payment processing firms nationwide ranking among the top five largest non-bank merchant acquirers in the U.S.

Silver Lake Partners, the world’s largest technology investment firm with $14 billion in assets under management, is acquiring approximately 60% of the business while the remaining shares of the company will largely be retained by Mercury’s Co-Founders Marc Katz and Jeffrey Katz, and long-time investor, Larry Stone – all of whom will continue to serve on Mercury’s Board of Directors. The transaction was designed and structured by FT Partners to provide liquidity to long-time investors while retaining maximum upside in the future growth of the company.

“This investment is the culmination of a wonderful relationship with the entire Mercury Payment Systems team and we are proud to have worked so closely with such a talented group of individuals in helping the company achieve this groundbreaking milestone,” said Steve McLaughlin, Managing Partner of Financial Technology Partners.  “Marc Katz, Jeffrey Katz and Matt Taylor have done an absolutely fantastic job of building a world-class company, assembling a top-tier management team and a executing on a highly differentiated strategy.  The results here speak for themselves.”

“This is truly a landmark event for Mercury and we were well served by Steve McLaughlin, Tim Wolfe and the entire FT Partners team as our advisors on this transaction,” said Marc Katz, Co-Founder and Board Member of Mercury.  “Steve and his team demonstrated the utmost integrity, objectivity and genuine passion as our advisor and their detailed knowledge of our business was unquestionably a factor in achieving this outcome.”

“Steve is one of the most dedicated and loyal professionals I’ve worked with over the years and his unwavering commitment to Mercury was truly unprecedented,” said Matt Taylor, CEO of Mercury.  “FT Partners more than lived up to our expectations through the creation of both substantial value for our shareholders and a transaction that ensures an optimal future for our company.”

This transaction further demonstrates FT Partners’ ability to establish strong relationships with top Payments and Financial Technology firms and to deliver outstanding results connecting clients with the industry’s most attractive transaction partners.  The Mercury / Silver Lake transaction is the fourth straight successful transaction by FT Partners in the payment processing and merchant acquiring space.  FT Partners previously achieved what continues to be viewed as record-setting valuations with both Lynk Systems’ sale to Royal Bank of Scotland for $525,000,000 in cash as well as with Verus Financial Management’s sale to Sage Software for $325,000,000 in cash. FT Partners also recently achieved, despite the recent market downturn, the $370,000,000 cash sale of Custom House, the leader in international B2B payments, to Western Union.

FT Partners was named “Investment Bank of the Year” in 2004 and 2006, and was also recognized as “DealMaker of the Year” in 2007, 2008 and 2009.