Report: AffiniPay Could Be Valued at $3 Billion in Genstar Capital Deal

Genstar Capital is reportedly in advanced talks to purchase a large stake in AffiniPay.

The deal could place the value of the payments processor at close to $3 billion — including debt — Reuters reported Wednesday (July 10), citing unnamed sources.

The deal is expected to be announced in the coming weeks, assuming the discussions do not break down, the report said. AffiniPay’s owner, the buyout firm TA Associates, will still hold a major stake in the company, jointly controlling it with Genstar.

AffiniPay did not reply to PYMNTS’ request for comment. A Genstar spokesperson declined to comment.

The proposed sale is happening amid an uptick in buyout dealmaking following a downturn in 2023, according to the Reuters report. Worldwide leveraged buyout volumes shot up 41% to $286 billion in the first half of the year.

Among this year’s notable deals in the payments space was Nuvei’s $6.3 billion acquisition by private equity firm Advent International in April.

“This transaction marks the beginning of an exciting new chapter for Nuvei, and we are glad to partner with Advent to continue to deliver for our customers and employees and capitalize on the significant opportunities that this investment provides,” Nuvei CEO Philip Fayer said at the time. “Our strategic initiatives have always focused on accelerating our customers’ revenue, driving innovation across our technology, and developing our people. Bringing in a partner with such extensive experience in the payments sector will continue to support our development.”

AffiniPay makes software that helps accountants, architects, lawyers and other professionals process payments at their firms.

In March, the company announced that its fee lending solution for the legal industry, Pay Later, had processed more than $125 million in legal fees since launching in the spring of 2022.

Pay Later, a pay-over-time product created specifically for the legal industry, has also been used by more than 54,000 legal professionals in the two years since its introduction.

“The rapid customer adoption and use of our Pay Later product is something we are very excited to celebrate,” AffiniPay CEO Dru Armstrong said at the time. “With Pay Later, we have been able to provide greater access to justice for our firms’ customers.”