U.S. financial technology firm Blackhawk Network Holdings Inc (HAWK.O) said on Tuesday it would be acquired by private equity firms Silver Lake and P2 Capital Partners in an all-cash deal worth about $3.5 billion including debt.
The offer of $45.25 per Blackhawk share represents a 24 percent premium to the stock’s Friday closing price.
Shares of Blackhawk rose 23 percent to $44.90 in premarket trading.
Pleasanton, California-based Blackhawk offers a range of services including gift cards and prepaid debit cards by partnering with companies such as PayPal (PYPL.O), American Express (AXP.N) and Western Union (WU.N).
The deal includes a $1.7-billion equity commitment from Silver Lake.
Sandler O‘Neill & Partners was Blackhawk’s financial adviser. Barclays, BofA Merrill Lynch and affiliates of Goldman Sachs and JPMorgan advised Silver Lake.