Online payments firm Paysafe (NYSE: PSFE) is reportedly considering a sale after receiving takeover interest, according to a Bloomberg report.
The company has enlisted the help of a financial advisor to explore its options, although deliberations are ongoing, and no decision has been made.
Paysafe Ltd., the online payments firm that went public via a merger with a blank-check company led by Bill Foley, is exploring a potential sale after receiving takeover interest, sources familiar with the matter claim.
London-based Paysafe, which is reportedly backed by Blackstone Inc. and CVC Capital Partners, is said to be exploring various options, according to the sources.
Paysafe went public in December 2020 through a merger with Foley Trasimene Acquisition Corp. II, valuing the company at $9 billion.
However, its stock has since plummeted by approximately 80%, with the company’s current valuation standing at $1.4 billion following a 12.3% surge in its stock price.
Despite its struggling stock performance, Paysafe has reported growth in its core segments, including gains in average transactions per active user of digital wallets.
The company has also expanded its reach in Europe and partnered with Revolut to bring its eCash service to the latter’s 10 million UK customers.
Additionally, Paysafe has collaborated with CellPoint Digital to enable travel merchants to offer seamless payments to their customers. CEO’s Perspective Paysafe CEO Bruce Lowthers has expressed optimism about the company’s partnerships and growth prospects.
However, the company’s adjusted earnings for the third quarter fell short of Wall Street expectations, while its total revenues exceeded consensus.
Paysafe’s exploration of a sale amid takeover interest highlights the challenges faced by the company in the highly competitive online payments market.
While Paysafe has reported growth in its core segments and secured notable partnerships, its struggling stock performance and declining valuation raise concerns about its long-term prospects.
As the company navigates its options, it remains to be seen whether a sale or alternative strategies will be pursued to revitalize its growth and competitiveness.
As covered, Paysafe is a payments platform with a “track record of serving merchants and consumers in the global entertainment sectors.”
Its core purpose is to enable businesses and consumers to “connect and transact seamlessly through capabilities in payment processing, digital wallet, and online cash solutions.”
Delivered through an integrated platform, Paysafe solutions are “geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments.”