Report: EQT Looks to Sell Majority Stake in Banking Circle

Private equity firm EQT is reportedly looking to sell its majority stake in payments processor Banking Circle.

EQT is aiming for a deal that would value Banking Circle at more than $2 billion, including debt, Reuters reported  Wednesday (Sept. 11), citing unnamed sources.

The firm and investment bankers have been talking with potential buyers, but there is no certainty that a sale will happen, according to the report.

EQT did not immediately reply to PYMNTS’ request for comment.

The company bought its stake in Banking Circle in 2018, for an undisclosed price, and Banking Circle’s founding staff own the remainder of the company, the report said.

Banking Circle holds a banking license in Europe, has a license to be an uninsured Connecticut state-chartered commercial bank, and generates annual revenue of about $400 million, per the report.

The company said in August that it partnered with Skydo to provide payment solutions for Indian businesses that operate in international markets.

This collaboration will enable the small and medium-sized businesses (SMBs) using Skydo’s cross-border payments platform to offer their buyers in the United Kingdom and the European Union a broader range of local payment options.

Banking Circle Chief Commercial Officer Mishal Ruparel said in an Aug. 22 press release: “By leveraging Banking Circle’s virtual accounts as well as our local and cross-border payment rails, Skydo can streamline the payment process for its clients, reducing both costs and transaction times and opening new, exciting markets.”

In August 2023, Banking Circle launched its BC Payments unit in Australia, saying it aims to offer FinTechs, banks and payments businesses in the country global payment solutions.

The company said at the time in a press release that BC Payments will help Australian FinTechs that are struggling with global growth and are facing the barrier of de-risking in the B2B payments space by local incumbents.

“BC Payments’ offering will be delivered utilizing the scale and infrastructure of the broader Banking Circle Group, which is already meeting the needs of some of the world’s largest payments businesses and banks,” Piers Cracknell, BC Payments’ head of Australia, said in the press release.