Welsh, Carson, Anderson & Stowe has agreed to acquire a majority stake in Revel Systems, the provider of a cloud-based point-of-sale system for retail clients. Scott Betts will take over as Revel CEO, replacing company founder Lisa Falzone. The company had raised more than $125 million in venture funding since its 2010 launch, including a $13.5 million investment from ROTH Capital Partners in 2015 at a $678 million valuation.
The announcement marks the culmination of talks that have surrounded Revel for the past six months, when reports emerged that IBM (NYSE: IBM) was in discussions to buy the business. A few weeks ago, meanwhile, a federal filing dated January 13 indicated that WCAS had acquired some stake in Revel. WCAS first backed the company in 2014, when it led a $100 million investment that valued Revel at $500 million.
The deal also represents a continuation of private equity’s increasing interest in fintech. Investors completed 78 PE deals in the sector last year, a decade high, according to the PitchBook Platform. It was the fourth straight year with an uptick in fintech activity, rising from a mere 39 deals in 2012.
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Article by PitchBook
