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Warburg cashes in with €290m trade sale

The sale of German payment processing business Easycash will net 3x the firm’s invested capital.

Warburg Pincus has sold German payment processing business Easycash for €290 million to trade buyer Ingencio Group. Details of the returns generated by the sale were not disclosed, but a source close to the situation said the exit would net Warburg 3x its invested capital and generate an IRR of more than 30 percent.

This week has seen a number of significant private equity exits, such as the sale of drinks business Orangina Schweppes – also to a trade buyer – by private equity backers The Blackstone Group and Lion Capital for €2.6 billion. Elsewhere Permira raised €177 million by selling more than half of its stake in German telecoms company Freenet.

Warburg Pincus invested in Easycash in 2006 and during the period of its ownership executed six bolt-on acquisitions, almost doubling the size of the company’s workforce to 350 employees. Based in Ratingen, Germany, the company provides card purchase processing equipment for retailers, operating 215,000 point of sale terminals.

Warburg Pincus, one of the largest private equity firms in the world, has been an active buyer and seller this year, acquiring a 10.3 percent stake in publicly traded UK conglomerate Premier Foods, increasing its stake in municipal bond insurer MBIA to more than 30 percent and acquiring an 18 percent stake in Australian waste management group Transpacific for around $400 million.

The private equity firm was also behind the largest private equity exit this year so far: the $4.4 billion sale of Metavante Technologies to Fidelity National Information Services.