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 Mercury rising as rival buys Checkpoint

E-commerce payments firm Checkpoint Holdings was yesterday sold to its Nasdaq-listed rival, Bottomline Technologies, for £53m.

Checkpoint, based in Reading, was the subject of a £17m management buyout 18 months ago and the sale represents a threefold investment gain for backer Mercury Private Equity.

The company specialises in providing secure payment solutions to businesses and was founded in 1985. It has 3,000 customers, including 95 from the FTSE 100 index of leading British companies.

Bottomline, which is based in Portsmouth, Hampshire, operates in a similar market and was floated on Nasdaq last year. It is also buying a Boston-based software firm called Flashpoint for £9m.

The enlarged Bottomline group will be able to offer electronic invoicing, payment and banking services.

Mercury Private Equity, which was spun out of Merrill Lynch last month, said that a shift in Checkpoint's strategy since the buyout towards more profitable, high growth opportunities had driven the sharp rise in the company's valuation.

The sale comes weeks before Mercury is set to embark on a new fundraising round. It manages more than £1bn in funds. Last year Mercury invested in nine companies with a total valuation in excess of £1.2bn.


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