AffiniPay could be valued at $3 billion in Genstar Capital deal

Genstar Capital is said to be in advanced talks to purchase a large block of shares AffiniPay.

The agreement may place value Reuters reported on Wednesday (July 10), citing anonymous sources, that the payments processor is valued at close to $3 billion — including debt.

The deal is expected to be announced in the coming weeks, assuming discussions do not break down, the report said. AffiniPay’s owner, buyout firm TA Associates, will continue to hold a significant stake in the company, jointly controlling it with Genstar.

Neither AffiniPay nor GenStar responded to PYMNTS’s request for comment.

The proposed sale comes as buyout activity has surged after a decline in 2023, according to a Reuters report. Global leveraged buyout volumes rose 41% to $286 billion in the first half of the year.

Among this Notable transactions in the payments sector this year include: Novei$6.3 billion acquisition by a private equity firm International Advent in April.

“This transaction marks the beginning of an exciting new chapter for Nuvei, and we are pleased to partner with Advent to continue delivering for our customers and employees and to capitalize on the significant opportunities this investment creates,” said Nuvei CEO Philip Fayer said at the time. “Our strategic initiatives have always focused on accelerating revenue for our customers, driving innovation across our technology and developing our people. Having a partner with such deep experience in the payments sector will continue to support our growth.”

AffiniPay creates software that helps accountants, architects, lawyers and other professionals process payments in their companies.

In March, the company announced that its legal fee lending solution, Pay Later, had processed more than $125 million in legal fees since its launch in spring 2022.

The Pay Later service, which involves paying in instalments and was created specifically for the legal industry, has been used by over 54,000 lawyers in the two years since its launch.

“The rapid customer adoption and use of our Pay Later product is something we are very excited to celebrate,” said AffiniPay CEO Dru Armstrong he said then“Thanks to the Pay later option, we have was able to provide “greater access to justice for our companies’ clients.”