Exclusive financial and strategic advisor to Blackstone, CVC and Paysafe Group
On 9th July 2020 KKR announced that it has agreed to acquire Paysafe Pay Later, the deferred payments arm of the Paysafe Group.
Paysafe Pay Later, which formerly operated under the name “Payolution”, was founded in 2011. With a geographical focus on the DACH region, Paysafe Pay Later is an omni-channel provider with solutions for both online and bricks-and-mortar retailers wishing to offer white-labelled invoice and instalment payment solutions, as well as bank transfers and direct debits. It is used by a wide range of well-known household names including Decathlon, Teufel and Schuhcenter.de.
This transaction is KKR’s latest investment platform investment in the German speaking payment market.
The acquisition is expected to complete in Q3, 2020, pending regulatory approvals.
Overview of PaySafe Group
Paysafe Group is a leading specialised payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, card issuing and online cash solutions.
With over 20 years of online payment experience, an annualised transactional volume of over USD98 billion, and approximately 3,000 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world.
Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments.
Overview of PaySafe Pay Later
Paysafe Pay Later (payolution GmbH) develops payment solutions for online and offline commerce. Proven products such as purchase on account, instalment payments (online, at the POS & in the call center), monthly invoices and SEPA direct debits enable retailers to increase their conversion rate and thus their sales.
One of the characteristics of the Pay Later product offering is the white label approach, in which the entire operational processing is carried out on behalf of merchants, while customers still see the respective merchants’ design. This ensures a seamless customer experience.
Corestar Partners’ Role
Corestar Partners acted as exclusive financial advisor to Paysafe Group and designed and executed a tailored process to ensure the best possible outcome for PaySafe Group and Pay Later.
This transaction underlines Corestar Partners’ #1 position as Europe’s undisputed M&A advisory market leader in the payment service sector and furthermore highlights Corestar Partners leading position in European Fintech M&A.
It represents Corestar Partners’ 30th transaction in the European payment services sector (e.g. Tillhub [Germany], Borgun [Iceland], Sipay [Spain], heidelpay [Germany], Vibbek [Switzerland], mPAY24 [Austria], PCS [Germany], Simplepay [Germany], HiPay [France], Concardis [Germany], Sofort [Germany], Klarna [Sweden], etc.)