InComm Announces Investment by Outside Firm, Safeway Announces BlackHawk IPO

by Mercator Advisory Group 0

The prepaid card distribution business is likely to get more competitive as the two largest players make moves to improve their respective positions. InComm announced that it has received outside investments that will help it expand. At the same time, Safeway Inc. announced it would sell a minority stake in Blackhawk Network Holdings.

InComm said its move would help it expand internationally.

Brooks Smith, Chief Executive Officer (CEO) and founder, InComm said, “I am excited to partner with a top tier private equity firm such as Warburg Pincus. A key part of our strategy will be to expand internationally and we were attracted to their track record and depth of relationships in geographies such as Asia and Europe. Warburg Pincus’ investment in InComm is a testament to the company’s performance and our success over the past two decades.”

Meanwhile, in a move that seems designed to unlock investment value, Safeway says it will take its distribution public in the first half of 2013.

The supermarket chain said it plans to file a registration statement for the public offering of a minority stake in Blackhawk. The exact timing of the IPO depends on market conditions. The company gave no details on pricing.

These moves will lead to expansions on the part of both companies, whether it is new geographical areas, in the case of InComm, or, in the case of Blackhawk, other business expansion as they seek to make use of the new capital.

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