Blackhawk Network finds new suitors in $3.5B deal

Prepaid card provider Blackhawk Network announced that Silver Lake, a global technology investing company, and P2 Capital Partners have agreed to acquire Blackhawk in an all-cash transaction for a total consideration of approximately $3.5 billion, which includes Blackhawk's debt, according to a press release.

Under the terms of the agreement, Blackhawk stockholders will receive $45.25 per share in cash upon closing of the transaction, representing a premium of 24 percent over Blackhawk's closing share price of $36.50 on Jan. 12 and a premium of 29.3 percent over the average closing share price during the 90 calendar days ended on Jan. 12.

The transaction, which is expected to close mid-2018, is subject to customary closing conditions, including receipt of stockholder and regulatory approvals.

Blackhawk operates a leading physical and digital gift card and prepaid payments network with global scale, connecting more than 1,000 brands to over 244,000 retail distribution locations and online channels.

Upon completion of the transaction Blackhawk will operate as a private company under the leadership of the current management team.

Blackhawk's board of directors has unanimously approved the definitive merger agreement and recommends that stockholders vote in favor of the transaction, according to the press release. The definitive agreement has fully committed debt and equity financing, including an approximately $1.7 billion equity commitment from Silver Lake. P2 Capital Partners, which beneficially owns approximately 5.4 percent of Blackhawk’s outstanding common stock, has committed to vote in favor of the proposed transaction.

"After a thorough assessment, the board has determined that this transaction represents a compelling outcome for our stockholders, customers and employees. It recognizes the value of Blackhawk's prospects while providing stockholders with an immediate cash value at a substantial premium," Bill Tauscher, executive chairman of Blackhawk, said in the press release.

Topics: Loyalty Programs

Companies: Blackhawk Engagement Solutions, Inc.

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