CVC carries on spending with €600m buy

Michael Bow
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CVC CAPITAL Partners, one of the world’s biggest private equity firms, yesterday said it had snapped up a controlling stake in online payment system Skrill for €600m (£511m), its second buy of the week.

It will buy the stake from Bahrain-based alternative investor Investcorp, which originally backed Skrill in March 2007 with €25m.

The deal comes on the back of CVC’s acquisition of insurer Domestic & General for £750m last Tuesday. The group is also close to buying European brands belonging to soup maker Campbell Soup, as it ramps up its dealmaking efforts.

Skrill, which sponsors conference division football in the UK, offers online pay services and competes directly with rivals like PayPal.

“CVC’s global reach and experience will support our goal to become the first choice in payments on a global basis,” Skrill boss Siegfried Heimgaertner said.

Bankers from Credit Suisse, Jefferies International and Royal Bank of Scotland all provided senior debt to go towards the deal.