TA’s auction of BluePay begins: sources

TA Associates’ sale of BluePay Processing has begun, three sources said.

Parties are signing nondisclosure agreements, the people said. Team meetings, where prospective buyers meet BluePay management, are slated for this week, one source said. When first-round bids are due is unclear.

Credit Suisse and Raymond James are advising on the process, sources said. BluePay is expected to fetch $700 million to $800 million, Buyouts has reported. The BluePay auction had been expected to start in the summer, the story said.

BluePay, Naperville, Illinois, provides payment-processing services for merchants and suppliers in the U.S. and Canada. The company offers services to more than 47,000 businesses and processes $14 billion in transactions annually.

TA acquired BluePay in 2013 for more than $200 million, Buyouts reported at the time. The firm’s investment came from TA XI, which collected $4 billion in 2009. The growth private equity firm is currently investing out of TA XII, which reportedly raised $5.3 billion in 2015.

The BluePay auction comes as other payments companies also up for sale. Evo Payments, a Madison Dearborn Partners portfolio company, is conducting a dual-track process, exploring both a sale and an IPO, Buyouts has reported. Evo could sell for $2 billion; Deutsche Bank AG and JP Morgan Chase are advising on the Evo process, the story said.

Parthenon Capital is also looking to sell Cayan LLC, Buyouts reported in June. FT Partners is running the process for Cayan, the story said.  Cayan produces about $40 million in run-rate EBITDA; it is seeking bids of $750 million to $1 billion, Buyouts said.

And Francisco Partners is seeking a buyer for PayLease, which is expected to fetch $300 million to $400 million, Buyouts said last month. Raymond James is running the PayLease auction, the story said.

Raymond James declined comment. Executives for TA Associates and Credit Suisse could not be reached for comment.

Action Item: Contact BluePay CEO Bala Janakiraman at +1 866-739-8324

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