Welsh, Carson, Anderson & Stowe has sold portfolio company GlobalCollect to Ingenico Group. WCAS generated sale proceeds of approximately $815 million, which will be distributed to the partners.
Welsh, Carson, Anderson & Stowe (the “Firm” or “WCAS”), a private equity firm exclusively focused on information/business services and healthcare, announced that it has completed the sale of its portfolio company, GlobalCollect (the “Company”) for €820 million to Ingenico Group (Euronext: FR0000125346 – ING). WCAS generated sale proceeds of approximately $815 million, which will be distributed to the Partners. In 2013, WCAS distributed approximately $160 million after a debt recapitalization of the Company.
WCAS acquired GlobalCollect in May 2010 after the Firm identified the global online payments market as a significant growth sector and GlobalCollect as a leading industry player. GlobalCollect is a leading full-service Payment Service Provider (“PSP”) that allows online merchants to accept a broad range of electronic payment types and currencies from consumers around the world. As a “collecting” PSP, GlobalCollect also handles moving, processing and reconciling funds between consumers and merchants. GlobalCollect leverages a worldwide network spanning 170 countries and territories, 150 currencies as well as 150 international and local payment methods.
WCAS has worked closely with the Company to grow the business since WCAS’s initial acquisition in 2010. This growth has been driven by (i) the Company’s strong competitive positioning in cross border e-commerce, (ii) the ongoing secular shift from brick-and-mortar
commerce to e-commerce, (iii) the need for online merchants to expand internationally to maximize growth, and (iv) accelerating expansion into emerging markets.
“We are very proud of the accomplishments that GlobalCollect and WCAS have achieved over the past several years.” said Sanjay Swani, General Partner at Welsh, Carson, Anderson & Stowe. “Tom Staudt, CEO of GlobalCollect, and his leadership team have done an excellent job building the Company into a market leader. We believe that GlobalCollect will continue to build on its leadership position under Ingenico Group’s ownership.”
WCAS has continued to capitalize on the strong public and private markets in recent years, taking the opportunity to pursue attractive exits during 2014. In addition to GlobalCollect, WCAS has sold Solstas Lab Partners and Peak 10 as well as announced the sale of Matrix Medical. WCAS has also completed the initial public offerings of Paycom Software, Inc. (NYSE: PAYC), and K2M Group Holdings, Inc. (Nasdaq: KTWO). Including pending distributions, WCAS has generated net liquidity of $3.8 billion since the beginning of 2013. This has resulted in WCAS’s investors receiving $5.05 of distributions for every $1 of capital called.
About Welsh, Carson, Anderson & Stowe
Welsh, Carson, Anderson & Stowe focuses its investment activity in two target industries, information/business services and healthcare. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. The Firm is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P.