Blackhawk Network Holdings is set to be acquired by Silver Lake and P2 Capital Partners in a deal worth $3.5bn.
The transaction will see the firms buy Blackhawk in an all-cash deal, which includes all of the company’s debt. This deal will see Blackhawk’s shareholders receive $45.25 per share. Blackhawk will continue to operate as a private company under its current management team.
California-based Blackhawk is a physical/digital gift card and prepaid payments network. A selection of gift cards, cash-based payment products, prepaid debit cards and rebate cards are available on the platform.
Blackhawk operates across a variety of subsidiaries which include Didix, Grass Roots, OmniCard, NimbleCommerce and Incentive CardLab, among others.
The company has connected over 1,000 brands to more than 244,000 retail distribution locations and online channels.
Blackhawk CEO and president Talbott Roche said, “This transaction delivers immediate benefits and significant value to our stockholders. Silver Lake and P2 Capital Partners bring the long-term focus, financial resources and technology expertise that can enable us to accelerate growth initiatives globally and reach the company’s full potential.”
Last year, Blackhawk acquired digital gift card developer CashStar, in a deal worth $175m. The acquisition saw CashStar become a part of Blackhawk’s digital incentives businesses.
Silver Lake closed its fifth tech-focused fund on $15bn, last year, surpassing its initial $12.5m target. The vehicle raised almost $5bn more than its predecessor, which closed in 2013 on $10.3bn.
Digital gift card marketplace Raise Marketplace closed a $60m Series C round led by Accel, last year.
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