ION, a privately-held financial technology group, is in discussions with US hedge fund Davidson Kempner Capital Management over striking a staged-payments deal to acquire Italian bad loan recovery firm Prelios, according to a report by Reuters.
ION, a privately-held financial technology group, is in discussions with US hedge fund Davidson Kempner Capital Management (DK) over striking a staged-payments deal to acquire Italian bad loan recovery firm Prelios, according to a report by Reuters.
The report cites two unnamed sources as revealing that ION and DK have been discussing a so-called earn out clause, which would see ION pay part of the price at closing and the rest once the business hits certain financial targets. Although an agreement has yet to be reached.
DK reportedly wants €1.4 billion for Prelios with advisor Goldman Sachs currently holding a tender for the sale.
Sources had told Reuters earlier this month ION was in discussions with DK over a potential acquisition of Prelios, on which the New York-based fund has put a 1.4 billion euro ($1.44 billion) price tag.
DK first invested in Prelios in 2017, buying other investors to take it private.
