Private Equity Firm Silver Lake Considers Selling Global Blue

Private equity firm Silver Lake is reportedly exploring selling Global Blue, a company that enables retailers to offer tax-free shopping.

This consideration comes after receiving expressions of interest from potential buyers, but there is no certainty that a deal will take place, Reuters reported Tuesday (Aug. 15), citing unnamed sources.

Reached by PYMNTS, a Silver Lake spokesperson declined to comment on the report.

Global Blue, headquartered in Signy, Switzerland, provides technology that reimburses retailers for creating tax-free purchases for customers, according to the report. The company serves more than 400,000 merchant stores across more than 50 countries.

Silver Lake has enlisted an investment bank to investigate potential options for Global Blue, such as selling or capital market transactions, the report said. Several other companies and private equity firms have demonstrated interest in buying Global Blue.

Global Blue’s market worth increased to around $1 billion on Tuesday afternoon as its stock prices jumped 9.2% in New York trading.

Silver Lake has a majority stake in Global Blue, according to the report. It acquired the firm in a 1-billion-euro deal in 2012 and later merged it with a blank-check acquisition company sponsored by the hedge fund Third Point LLC at a $2.6 billion valuation in 2020.

Global Blue’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12-month period ending March was 78 million euros ($85 million), the report said. This was a turnaround for the company, as in the previous 12 months it had recorded a 9.9 million euro ($11 million) loss, primarily as a result of the air travel slump caused by the COVID-19 pandemic.

However, Global Blue has commented that as China reopens its travel, it expects the recovery to continue, per the report.

Global Blue acquired a majority stake in post-purchase technology provider Shipup in October, saying the investment added to its mission of building an ecosystem of post-purchase technologies for retailers.

In previous acquisitions, Global Blue bought eCommerce returns provider ZigZag Global and digital receipt technology provider Yocuda.

About six months before buying Shipup, in May 2022, Global Blue secured a $225 million strategic growth equity investment from CK Opportunities Fund and said it planned to use the fresh capital to continue its pursuit of add-on acquisitions in omnichannel retail tech.