Paysafe Group has revealed it received a conditional offer from Blackstone and CVC Capital Partners valuing the business at £2.9bn.
The funds offered 590p a share in cash, according to a statement by the payments processing firm on Friday. The Telegraph reports that the funds initially approached the board of Paysafe in May and had made a number of indicative proposals since then, Paysafe said.
The news sent Paysafe’s shares rocketing 8.5pc in early trade to a record high of 591p. The stock is up more than 58 per cent in the year to date.
Old Mutual Global Investors, the company’s largest shareholder with about 10.3 per cent of the firm’s shares, has sent a non-binding letter supporting the offer. The bidders have until August 18 to confirm their bid.
Paysafe has grown its revenue by 600 per cent since 2011, a large proportion of which comes from handling gambling transactions for betting companies such as Ladbrokes and William Hill.
In 2016 it joined the FTSE 250 index and posted a huge increase in profits.
