Silver Lake Management and P2 Capital Partners are evaluating strategic options for Blackhawk Network, the prepaid card and gift voucher platform they took private in 2018, with a potential exit valuation exceeding $5bn, according to sources cited by Bloomberg. 

The private equity owners are working with advisers to assess both a full sale and a potential public market return via an initial public offering (IPO). Discussions are still at an early stage, but early interest from other financial sponsors suggests the possibility of one of the largest secondary buyouts in the payments sector this year.

Silver Lake and P2 originally acquired Blackhawk for $3.5bn, and have since expanded its presence in digital and branded payments, partnering with leading consumer brands such as Target, Nike, Best Buy, and Panera Bread.

The potential exit comes amid a wave of consolidation across the payments landscape, where scale, integration, and platform synergies have become critical competitive advantages. Recent landmark transactions include GTCR and FIS’s agreement to sell Worldpay to Global Payments for $24.3bn.

With peers such as Green Dot, Paysafe, and AvidXchange also weighing strategic alternatives, Silver Lake and P2 could be well-positioned to capitalise on strong private equity appetite for payments infrastructure assets.

If completed at the targeted valuation, the sale would deliver a significant return on their original investment, reinforcing the attractiveness of the payments sector as a value creation opportunity for private equity.

Silver Lake and Blackhawk declined to comment, while P2 Capital Partners did not immediately respond to requests for comment.

Source: Bloomberg