Reverence Capital Partners is considering a sale of Transact, a mobile technology developer for educational services, according to people familiar with the matter.
The New York-based private equity firm has held discussions with financial advisers about a potential sale of the business, said the people, asking not to be identified because discussions are private.
No final decisions have been made and the company could still opt against a sale and do tuck-in deals instead, one of the people added. In 2019, Reverence acquired the company from private equity-backed education technology provider Blackboard Inc. It’s unclear how much it would fetch in a potential sale.
“We are focused on our clients and bringing new products to market,” a representative for Transact said in a statement. “No comment on rumors.”
A representative for Reverence Capital declined to comment.
Transact partners with universities and colleges to help develop connected-campuses for students and parents needing to process tuition and fee payments, dining hall access, retail transactions and more. The company counts more than 1,750 higher-education institutions among its list of customers, according to its website.
Transact’s client base is seen as sticky given the cyclical nature of revenue from post-secondary institutions. The company facilitates about $45 billion in payments annually, its website showed.
Reverence Capital provides private equity and structured capital to middle-market companies. It was founded in 2013 by Milton Berlinski, Peter Aberg and Alex Chulack. The firm invested $100 million in growth equity last year to CAIS Capital, joining the ownership ranks alongside Apollo Global Management Inc. and Franklin Templeton.
