WALL STREET – Vantiv, the cards processor for 800 credit unions, said Advent International, the Boston money firm that took the company public this spring, plans to cash out some of its stock, at an estimated $60 million profit.
After the planned secondary offering of 12.2 million shares the venture fund will still own almost 58% of all outstanding Vantiv shares valued at about $2.8 billion.
Advent obtained its shares in Vantiv, known till a year ago as Fifth Third Processing Solutions, when it bought a 51% stake in the company in a joint venture with Fifth Third Bancorp, the Cincinnati banking company. Advent acquired its 51% stake in the joint venture in March 2009 for $561 million.
The secondary offering is being sold through several Advent investment funds for $21.90, 29% above the $17-a-share IPO price.
Fifth Third, which currently has a more than 18% stake, is not selling any shares in the offering.
The company has been processing credit union cards for several years but carved out a major market share in July 2010 when it acquired TNB Card Services, the card processing business of credit union-owned Town North Bank of Dallas. TNB Card Services had served 370 credit unions with more than 1.4 million member accounts.