CVC Capital Partners buys 75% stake in Skrill
Formula 1 owner buys payments firm in 600m deal that sees previous owners Investcorp remain as minority shareholders
CVC Capital Partners, the private equity firm behind the failed Betfair takeover bid, has acquired a 75% controlling stake in online payments provider Skrill for 600m (£511m).
Skrill’s previous owners, a consortium of investors led by Investcorp which invested 105m in the business in 2007, will retain a minority stake and a position on the board.
CVC had a 950p per share takeover bid rejected by Betfair in May, with the sportsbook operator saying the £975m offer undervalued the company.
Skrill, formerly known as Moneybookers, was founded in 2011 and provides digital wallet services to much of the online gambling industry. It employs 700 staff and reported revenues of more than 200m in 2012 with around 35 million account holders and 150,000 merchants using its payment gateway solution.
Last year it broadened its services by acquiring 100% of shares in Austrian prepaid voucher provider paysafecard.com for a total consideration of up to 140m.
“We are delighted to have CVC on-board while retaining Investcorp as a significant investor, as we continue our evolution and growth as a global payments provider,” said Siegfried Heimgaertner, president and CEO of Skrill.
“CVC’s global reach and experience will support our goal to become the first choice in payments on a global basis. The value-based transformation we began in 2012 will continue unabated through this year and into 2014.”
“Skrill is a high quality business that has demonstrated its ability to grow rapidly into a market leading provider of online payments serving the online gaming, gambling, digital media and e-commerce industries,” Peter Rutland, senior managing director of CVC Capital Partners added.
The completion of the transaction is subject to customary competition clearances and regulatory approvals.