Blackstone and Warburg Pincus explore $10bn IntraFi sale
Blackstone and Warburg Pincus are exploring a sale of US financial technology company IntraFi that could value the business at more than $10bn, according to a report by Reuters.
Two prominent private equity firms, Blackstone and Warburg Pincus, are reportedly investigating the possibility of selling US financial technology company IntraFi for over $10 billion, according to a Reuters report. The investment banks Morgan Stanley and Guggenheim Securities have been enlisted to assist in the potential transaction, though the process is still in its initial stages. The owners of IntraFi have not yet determined whether they will sell the business.
IntraFi, headquartered in Arlington, Virginia, is a key player in the US financial sector, maintaining one of the largest reciprocal deposit networks. This system allows banks to distribute customer deposits across multiple institutions, providing federal deposit insurance coverage beyond the usual $250,000 limit. Additionally, IntraFi facilitates deposit trading, generating transaction fees by connecting banks with surplus deposits to those in need of additional funding. The company generated around $630 million in annual EBITDA, as per Reuters' sources.
Blackstone acquired IntraFi, previously named Promontory Interfinancial Network, in 2019 from various investors, including Bank of New York Mellon. In 2022, Warburg Pincus also invested in the company. The potential sale of IntraFi aligns with private equity firms' efforts to take advantage of improving exit conditions. Recently, Warburg Pincus finalized the sale of insurance broker McGill and Partners and energy producer WildFire Energy.
Meanwhile, Blackstone recently agreed to sell Clarion Events to Informa for approximately £2.2 billion.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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