STOCKHOLM, March 14 (Reuters) - Private equity firm Nordic Capital said on Wednesday it was buying online banking payments provider Trustly, the latest in a string of deals in the fast-growing fintech sector.
Payments companies have become attractive targets for buyout groups and credit card firms seeking to take advantage of a switch from cash transactions to smartphone or mobile payments.
The deal values Trustly at roughly 700 million euros ($865.8 million), The Financial Times reported on Wednesday. A Nordic Capital spokeswoman declined to comment on the valuation of the company.
Several deals in the sector have been announced over the past year, including private equity group Permira’s investment in Sweden’s Klarna and a private equity bid for Paysafe Group.
Trustly, which helps customers to make instant online payments direct from their bank accounts, said its biggest owner Bridgepoint Development Capital will dispose of its full equity interest, while management, founders and investment company Alfvén & Didrikson will remain significant shareholders.
Nordic Capital, one of Europe’s largest private equity investors, said it would support management to accelerate Trustly’s growth in its existing and new markets as well as expand the product portfolio.
Nordic Capital in 2017 sold Swedish payment platform Bambora to French payments specialist Ingenico for 1.5 billion euros ($1.9 billion) after three years of ownership.
It said Trustly handles over 3.5 million payments with monthly payment volumes of around 6 billion crowns ($732.2 million). ($1 = 0.8085 euros) (Reporting by Helena Soderpalm. Editing by Jane Merriman)