Among the largest private equity deals.
Carlyle is in advanced negotiations with the promoters of Prizm Payments for a controlling stake in the company.
The deal values Prizm at $225-250 million, or about 2.5-3 times its turnover last year. The figure is, however, significantly lower than the initial expectations of close to $400 million for the company.
The deal, which would be one of the largest transactions in the financial sector in recent times involving a private equity fund, will see financial investor Sequoia Capital exit Prizm.
Currently, the promoters and management own a little over 50% of the unlisted company with the bulk of shareholding resting with the three co-founders led by Loney Antony.
Though the current management is likely to stay on, Carlyle may end up with 70-80% stake, one of the sources mentioned above said.
The company received four bids and has now entered into exclusive talks with Carlyle India and is likely to close the deal by end of the year.
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