Carlyle Cardinal Ireland (CCI) sells Payzone to AIB and First Data for €100m
18 April 2019 | 0
Payzone, one of Ireland’s largest providers of payment solutions, is to be acquired by a newly-formed joint venture established by AIB Group plc (AIB) and First Data Corporation.
The joint venture will acquire a majority stake in Payzone from existing shareholders, including Carlyle Cardinal Ireland Fund (CCI), for an enterprise value of up to €100 million.
CCI, the private equity fund established by The Carlyle Group (NASDAQ: CG) and Cardinal Capital Group, acquired a majority shareholding in Payzone in March 2015. During its four years of ownership, CCI worked with Payzone’s management team to diversify the business and develop the company into a multichannel payments provider, employing 90 people.
Today Payzone’s technology solutions allow both large and small Irish businesses to accept payments in-store, on the road, over the phone, and through a website or app. The company processes 125 million transactions annually for more than 100 client companies and operates Ireland’s largest retail payments network with over11,500 points of sale throughout the country.
The change in ownership will have no impact on the day-to-day business operations of Payzone in Ireland. The senior management team, including Jim Deignan, CEO and Nigel Bell, CFO, will remain in their roles.
“This development is a positive step for Payzone and a vote of confidence in the future of the business,” said Jim Deignan, chief executive, Payzone Ireland.
“We see significant opportunity to grow our footprint in the fintech sector,” Deignan added, “and this can only be enhanced further with the backing and support of our new shareholders, who bring deep industry expertise to make things happen.
He also thanked the team at Carlyle Cardinal Ireland for “their great support and investment,” over the past four years.
“Net revenue and EBITDA have grown by 40% and 70% respectively, since we invested,” said Peter Garvey, managing director, The Carlyle Group. “Payzone still has numerous opportunities for further growth, which can now be realised with the support of the new investors.”
CCI representatives Peter Garvey and Robert Easton of The Carlyle Group and Daragh Lane of Cardinal Capital Group will step down from the Payzone board on completion of the transaction, which is subject to approval from the European and Irish competition authorities.