It is CVC’s third major move in a week following its £750m acquisition of the white goods insurer Domestic & General and the announcement of exclusive talks to buy parts of the European business of Campbell Soup.
Skrill was formerly known as Moneybookers and processes payments for online retailers, gambling websites and media companies. Investcorp said it reported revenues of more than €200m last year and EBITDA of €50m.
CVC’s acquisition of a 75 percent stake in Skrill will be funded with around €250m of equity as well as debt financing provided by Credit Suisse, RBS and Jefferies. Investcorp, which invested €105m for a controlling stake in Skrill in 2007, will retain a “substantial minority position” and a seat on the board.
The Bahraini Group put Skrill up for sale by Barclays earlier this year following rapid growth and the acquisition last year of Paysafecard.com from Wertkarten, an Austrian provider of prepaid vouchers that enable consumers to shop online with a lower fraud risk, for €140m. The company now employs some 700 staff and boasts 35 million account holders, and 150,000 merchants. It competes with the eBay-owned digital wallet provider PayPal and Google Checkout, among others.
The company’s management team will remain in place folowing completion of the deal, which is subject to approval by regulators.
Skrill chief executive Siegfried Heimgaertner said: “We are delighted to have CVC on-board whilst retaining Investcorp as a significant investor.
“CVC’s global reach and experience will support our goal to become the first choice in payments on a global basis. The value-based transformation we began in 2012 will continue unabated through this year and into 2014.”
CVC senior managing director Peter Rutland said it would support Skrill’s international expansion plans. The company had planned to raise funding in a flotation but abandoned the idea in 2011 amid concern about the weak IPO market.