VeriFone has agreed to pay in the region of SKr 7.5 billion (€822 million; $1.1 billion) for Point, which provides payment solutions to retailers. Although Nordic declined to comment on its return, an investor source indicated the deal represented the buyout group’s biggest ever return multiple.
It is the latest blockbusting exit for Nordic, which sold medical device manufacturer Atos Medical to peer EQT in July in a deal which an investor source said had delivered a 5x return for the firm. The return multiple on the Point exit is understood to be higher than that.
Nordic Capital acquired Point International and EDT in 2004 for undisclosed sums, merging the pair to form Point Group.
Fredrik Näslund, a partner at Nordic Capital, said in a statement: “Under Nordic Capital’s ownership, Point has had fantastic growth, with sales close to five times higher than at the time of acquisition and taken the position as the leader in advanced payment services in Europe. Nordic Capital has supported the management to make significant R&D investments and do strategic add-on acquisitions, creating value and sustainable growth opportunities, and thereby ensuring that Point remains a European leader in a field that has a tremendous growth potential.”
JPMorgan, SEB Enskilda and White & Case advised Nordic on the exit. Credit Suisse, KPMG, Gernandt & Danielsson, and Sullivan & Cromwell advised VeriFone.
Financing for the deal will reportedly be provided by JPMorgan, Bank of America Merrill Lynch, Wells Fargo Bank, Barclays Capital and RBC Capital Markets.