Private equity firm GTCR is in advanced discussions to acquire prepaid card provider Blackhawk Network in a deal that could value the business at between $4bn and $5bn, including debt, according to a report by Bloomberg.
Blackhawk, which was taken private by Silver Lake and P2 Capital Partners in 2018 in a $3.5bn deal, had also been exploring an IPO option earlier this year, according to Bloomberg. The company’s current owners are reportedly seeking a valuation above $5bn.
No agreement has been finalised and talks could still fall through, with the possibility of other bidders emerging.
Headquartered in California, Blackhawk provides gift cards and prepaid payment solutions for brands including Target, Panera Bread, and Nike. The company is considered one of the largest players in the prepaid card space.
GTCR has an extensive track record in financial services and payments. In April, the Chicago-based firm agreed to sell its stake in Worldpay to Global Payments in a $24.3bn transaction.
GTCR and Silver Lake declined to comment. Blackhawk and P2 Capital Partners did not respond to requests for comment.
