Silver Lake Partners will sell Mercury Payment Systems to payment processor Vantiv for $1.65 billion.
The deal marks the second such acquisition for Vantiv, which acquired Element Payment Systems last year in its effort to provide more integrated payments processing.
Silver Lake, which focuses on technology investments, bought a controlling stake in Mercury Payment Systems in 2010 for $450 million in cash. Under Silver Lake's ownership, Mercury has grown revenues from $87 million to $237 million and tripled EBIDTA to $93 million. Silver Lake will generate a 30 percent IRR on the deal following a short sale after the company failed to go public, according to a source familiar with the situation.The transaction is expected to close this quarter. Vantiv shares closed up 3 percent following news of the deal.
Silver Lake focuses on investments in the technology sector and recently acquired Titan Technology Partners through its portfolio company Velocity Technology Solutions for $80 million. Titan provides managed and cloud services for the enterprise.
Silver Lake was recently ranked 15th in this year’s PEI 300 for its fundraising efforts during the past five years.