CCI sells Payzone to AIB and First Data for €100m

Kenny Wastell
18 April 2019

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Carlyle Cardinal Ireland (CCI) has agreed to sell Irish payment processing company Payzone to an AIB Group and First Data Corporation joint venture in a deal that gives the business an enterprise value of тЌ100m.

The transaction, which is the third exit for the joint venture between The Carlyle Group and Cardinal Capital Group, brings to an end a four-year holding period. The fund originally acquired Payzone from Duke Street in a 2015 deal worth €40-50m.

Under CCI's tenure, Payzone developed into a multichannel provider, comprising face-to-face, online, mobile and telephone payment services, and increased its headcount from 70 to 90. The company's net revenues and EBITDA grew by 40% and 70% respectively during the holding period, according to a statement.

Following completion of the deal, Payzone CEO Jim Deignan and chief financial officer Nigel Bell will remain in their roles.

The transaction is subject to approval from the European and Irish competition authorities.

Previous funding
Duke Street acquired a 69% stake in Payzone in 2010, when the company was listed on AIM. CCI then acquired a majority stake in the Irish division of the company five years later.

Company
Payzone was formed in 2007 through the merger of Irish e-payments group Alphyra and UK ATM operator Cardpoint. The business provides payment software and hardware. It processes around 125 million transactions per year, according to the statement, and operates a network of more than 10,000 retail points of sale across Ireland.

People
The Carlyle Group – Peter Garvey, Robert Easton (managing directors).
Cardinal Capital Group – Daragh Lane (associate director).
Payzone – Jim Deignan (CEO); Nigel Bell (chief financial officer).

Advisers
Vendor – Arma Partners (corporate finance, M&A).