PE firms Silver Lake Management and P2 Capital Partners are exploring strategic exit options from their investment in Blackhawk Network, the prepaid card and gift voucher platform they took private in 2018, including a sale at a potential valuation in excess of $5bn, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the firms are working with advisers to evaluate both a full sale and a public market return via an initial public offering (IPO). Although discussions remain at an early stage, interest from other financial sponsors is already emerging, signalling potential for one of the larger secondary buyouts in the payments space this year.
Silver Lake and P2 originally acquired Blackhawk in a $3.5bn take-private deal, and have since expanded the platform’s footprint across digital payments and branded payments partnerships. Today, the business provides gift and prepaid card services for major consumer brands such as Target, Nike, Best Buy, and Panera Bread.
The potential sale comes amid a wave of M&A activity in the global payments sector, where scale and platform synergies are critical. Notably, GTCR and FIS recently agreed to sell Worldpay to Global Payments for $24.3bn, marking one of the largest recent transactions in the space.
With peers like Green Dot, Paysafe, and AvidXchange also evaluating strategic alternatives, the timing may be opportune for Silver Lake and P2 to realise returns on their investment, especially if private equity appetite for payments infrastructure remains strong.
If successful, an exit at the mooted valuation would deliver a significant uplift on their 2018 entry point.
Silver Lake and Blackhawk declined to comment on the potential transaction. P2 Capital did not immediately respond to requests.
