London-based private equity firm Inflexion has today taken a £150m minority stake in payment services business Radius, in a deal showing payment technology is still in hot demand.
Radius, which was valued through the deal at £800m, provides card services (such as fuel cards) to smaller businesses with vehicle fleets. This affords these small and medium-sized firms purchasing power and customer service which might otherwise only be available to big businesses.
Radius has also expanded into telematics, looking at telecoms and road safety services for fleets, and also offers a Mastercard business expenses card tailored to fleet owners.
“Radius is a high growth business with substantial international operations – this investment clearly demonstrates the entrepreneurial demand for a true minority investor,” said Inflexion's David Whileman. The investment was made through Inflexion's “partnership capital” model, which allows businesses to receive growth capital and operational advice without having to sell a majority stake.
Radius was founded in 1990 by chief executive Bill Holmes, and is the second-largest employer in its hometown of Crewe. It has completed more than 30 acquisitions to date and boasts more than 200,000 customers in 14 countries.
Payment processing and merchant services businesses have proved increasingly popular with private equity firms over the past year, as businesses increasingly transition to card-based technologies.
London-based fintech investor Anacap bought out e-commerce specialist Heidelpay, while giants Advent and Bain have a string of deals in the sector under their belts including Worldpay, Nets, ICBPI and Concardis.