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Silver Lake and P2 Capital to buy US financial technology firm Blackhawk for $3.5bn

BBR Staff Writer Published 17 January 2018

Silver Lake and P2 Capital Partners have agreed to acquire US financial technology firm Blackhawk Network Holdings for around $3.5bn.

As per terms of the deal, Silver Lake and P2 will pay 45.25 per Blackhawk share, which represents a premium of 24.0% over its closing share price on 12 January.

Based in Pleasanton of California, Blackhawk manages physical and digital gift card and prepaid payments network to connect over 244,000 retail distribution locations and online channels.

Blackhawk provides platforms and solutions to manage stored value products, promotions and incentive programs in retail, ecommerce, financial services and mobile wallets.

 Blackhawk’s Hawk commerce division provides technology solutions to businesses and direct to consumers, while Hawk incentives division offers enterprise, SMB and reseller partners with an array of platforms and branded value products to incent and reward consumers, employees and sales channels

Subject to customary closing conditions, the deal is expected to complete in the middle of this year.

Once the deal concludes, Blackhawk will run as a private entity under the leadership of the current management team.

Blackhawk executive chairman Bill Tauscher said: “After a thorough assessment, the Board has determined that this transaction represents a compelling outcome for our stockholders, customers and employees.

“It recognizes the value of Blackhawk’s prospects while providing stockholders with an immediate cash value at a substantial premium.”

Silver Lake managing partner Mike Bingle said: “Blackhawk’s outstanding network of partners and proprietary technology creates a unique franchise in the payments industry with a proven ability to innovate in both the physical and digital segments.”

Image: Silver Lake and P2 Capital to acquire Blackhawk Network. Photo: courtesy of  scottchan / FreeDigitalPhotos.net.