Siris, expected to fundraise, seeks buyer for Digital River: source

A little more than two years after it was sold to Siris Capital Group, Digital River is again the target of M&A.

Siris is looking to sell all of Digital River, a banking source said, while two other banking sources said only Digital River’s gateway business is on the block.

Raymond James is advising, sources said.

Bloomberg reported in April that Siris was seeking a buyer for all of Digital River. A sale could be valued at $1 billion, the story said.

Digital River, Minnetonka, Minnesota, provides payment and marketing services. Siris Capital completed its $840 million buy of Digital River in February 2015. Siris invested $375 million equity into the deal, Buyouts reported. Digital River ended up selling Beanstream, a provider of payment, risk-management and authentication solutions to companies and institutions in North America, to Bambora the following November.

Founded in 2011, Siris invests in technology companies. The private equity firm has invested in 11 companies including Pulse Secure, Airvana and Polycom.

Siris Capital is expected to be out fundraising for its latest pool late this year or early next year, Buyouts reported. The firm is expected to seek at least $3 billion, the story said. Siris Capital’s third fund collected $1.81 billion in 2015.

Private equity is a frequent investor in payments companies but lost out in two recent deals. FleetCor Technologies said May 1 that it agreed to buy Cambridge Global Payments for $675 million. Earlier this year, several PE firms vied for Cambridge, which provides payment technology and currency-risk management to more than 12,000 customers, Buyouts reported. FT Partners advised on the auction.

Last week, Vantiv agreed to buy Paymetric, which provides payment-processing-software for corporations. The sale price was around $525 million, Buyouts said. Francisco Partners put Paymetric up for sale earlier this year, Buyouts said. William Blair advised on the process. The auction drew interest from CardConnect, GTCR and Welsh, Carson, Anderson & Stowe, the story said.

Siris declined comment. Executives for Digital River and Raymond James could not be reached for comment.

Action Item: Contact Digital River: www.digitalriver.com/contact-us/

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