Two PE firms fight for Comdata’s SVS

Two bidders remain for Stored Value Solutions, the gift card provider that is being sold by Comdata Inc., three sources said.

GTCR LLC and Genstar Capital are still vying for SVS, the people said. However, bids for SVS have come in low, the people said. SVS had expected to sell for around $600 million, peHUB has reported. Offers instead came in in the “high $400s,” one of the sources, a banker, said.

“Six hundred million was a pipe dream,” another banker said.

The low offers have caused Comdata to reconsider whether to sell the company, sources said. Along with a private equity deal, Comdata may consider a joint venture with either GTCR or Genstar, the first banker said.

GTCR knows the space better, the second source said. The Chicago-based private equity firm sold National Processing Company to Fifth Third Processing Solution in 2010. NPC, of Louisville, Kentucky, processes debit cards, credit cards and gift cards for retailers.

SVS, of Louisville, is a provider of gift cards. The company manages gift card programs for retailers globally. Executives for SVS couldn’t immediately be reached for comment.

In November, FleetCor Technologies closed its $3.45 billion buy of payment processor Comdata. Ceridian, a portfolio company of Fidelity National Financial and Thomas H. Lee Partners, was the seller.

Executives for Genstar and Fleetcor declined comment. GTCR couldn’t be reached for comment.

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