Swift Prepaid, backed by Bain Capital Ventures, weighs sale

Swift Prepaid Solutions, a fintech company backed by Bain Capital Ventures and Silversmith Capital Partners, is exploring a sale, five sources said.

Raymond James is advising on the process, the people said. Swift was founded in 1996 as a non-bank issuer of Visa and Mastercard prepaid cards. The Buffalo Grove, Illinois company provides prepaid solutions for incentive and reward programs. Swift provides branded, prepaid cards in more than 160 countries in 10 currencies. Swift recently rebranded itself as Davinci Payments.

UPDATE: Brian Levin, Swift Prepaid’s CFO, said in an emailed response to questions that Swift was not on the block. “We are not selling the company,” he said.

UPDATE No. 2: Juli Spottiswood, chairman & CEO of Syncapay, the holding company that owns Swift Prepaid (now Da Vinci Payments), said in an email that they engaged Raymond James in 2017. Syncapay recently asked the IB to explore the capital markets, both debt and equity, in order to expand Syncapay. “The current shareholders have no intention of selling the company at this time,” Spottiswood said in the email.

The company produces $65 million in revenue on $35 million Ebitda. It is expected to sell for 15x to 16x, sources said. The investment dates back to December 2017 when Bain Capital Ventures and Silversmith Capital Partners acquired the company. It’s unclear how much the firms paid.

Syncapay, a holding company that seeks to buy payments companies, owns Swift Prepaid. Syncapay is backed by Bain Capital Ventures, Silversmith, MissionOG and Nyca Partners.

Swift is the latest company backed by Bain Capital Venture that is on the block. Billtrust, which provides a payment cycle management platform, is up for sale, Buyouts reported in June. Bain Capital Ventures invested $25 million in Billtrust in 2012 and led, along with Goldman Sachs Private Capital, a $25 million round for the company in 2015.

Bain declined comment. Executives for Raymond James, Silversmith, MissionOg and Nyca could not be reached for comment.

Action Item: For more information on Syncapay email CEO Juli Spottiswood here. 

*Milana Vinn contributed to this report