Danish pension fund ATP has helped to finance the acquisition of Nordic payments group Nets, issuing a PIK note as well as contributing equity to the deal.
Boston-based Advent International and Bain Capital, together with ATP, agreed to pay DKK 17 billion (€2.3 billion; $3.1 billion) for the business, according to a statement.
The trio will buy the company from a group of 186 primarily Danish and Norwegian banks. They will also pay a dividend for 2013 which totals DKK498 million (€67 million, $92 million), according to a statement.
Both Advent and Bain will invest DKK2.6 billion of equity (€350 million, $480 million) in the business. ATP will invest DKK 3.6 billion (€480 million, $670 million), consisting of DKK 300 million of equity capital (€40 million, $55 million) and DKK 3.3 billion (€440 million, $610 million) structured as a payment in kind note.
ATP Private Equity Partners, a private equity fund which invests approximately €1.4 billion on behalf of ATP, is investing DKK 150 million (€20 million, $28 million) of equity in Nets, while Via Venture Partners, a Nordic private equity firm whose sole LP is ATP, is also investing DKK 150 million of equity.
It is understood the deal consists of 50 percent debt and 50 percent equity. It remains subject to regulatory approvals, but is expected to complete in the second quarter of this year.
Bain and Advent declined to comment beyond the statement, while ATP did not respond to a request for comment at press time.
As a payment processer, Nets has access to sensitive personal data. Advent and Bain have teamed up with ATP as they felt it was important to work with a credible local investor, according to a source familiar with the matter.