Bain, Advent Near Deal To Buy Concardis

Bain Capital and Advent, the two private equity firms, are close to inking a deal to acquire Concardis, a German payment group.

According to a report by Reuters, citing three people familiar with the process, the price tag is around €700 million. Concardis provides payment terminals and payment technology to the eCommerce markets. Deutsche Bank has a 16 percent stake in Concardis, making it the largest shareholder. Smaller stakes in Concardis are owned by Commerzbank, Unicredit and savings and cooperative banks, noted the report.

Concardis wants a new owner to invest to expand the business and enable it to provide new technologies. Concardis is largely a German play, according to Reuters. In 2016, it had core earnings of €33.9 million and sales of €480 million.

In December, Reuters reported Concardis was receiving final bids from other suitors, including CVC and Bridgepoint. Wirecard, which was seen as a strategic suitor, dropped out of the running for Concardis. According to Reuters, private equity groups have been interested in payment companies, with PE firms making investments in Worldpay, Nets and ICBPI. The investments were to develop and strengthen those companies’ businesses. More buyout deals are expected to happen in the payment sector, noted Reuters. Reuters pointed to Heidelberger Payment of Germany, which is also on the sale block, while B+S Card Service is on the hunt for an investor.