Filing Flows › Paymentus Holdings (PAY) › Takeover & LBO
Is Paymentus Holdings (PAY) a takeover target?
A leveraged buyout at today's price plus 30% ($42.67 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.4% of companies with its figures were bought within a year (0.69× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $42.67 | today's $32.82 plus 30% |
| × shares | 130.3 million | |
| = Equity value | $5.6B | |
| + Debt refinanced | $0 | |
| − Cash | $408M | |
| = Enterprise value | $5.2B | 33.2× EBITDA of $155M |
| Fees | $103M | 2% of the price |
| New debt | $854M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.4B | 84% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.5B | $168M | $65.3M | $74.6M | $779M |
| Year 2 | $1.6B | $179M | $59.6M | $88.9M | $691M |
| Year 3 | $1.7B | $189M | $52.8M | $103M | $587M |
| Year 4 | $1.8B | $197M | $44.9M | $117M | $470M |
| Year 5 | $1.9B | $203M | $36.0M | $130M | $340M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 24.9× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.1B | |
| − Debt left | $340M | |
| = Buyer's equity | $4.7B | |
| Money multiple | 1.07× | on $4.4B put in |
| Buyer's yearly return (IRR) | 1.4% |
Price against return
What the buyer makes at other premiums over today's $32.82.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $36.10 | 6.0% |
| 20% | $39.38 | 3.5% |
| 30% | $42.67 | 1.4% |
| 40% | $45.95 | −0.5% |
| 50% | $49.23 | −2.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.4B | |
| EBITDA, last 12 months | $155M | 10.9% of revenue |
| Depreciation and amortization | $38.5M | |
| Capital spending | $454K | |
| Debt | $0 | |
| Cash | $408M | |
| Share price | $32.82 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 26% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Paymentus Holdings would cost about $45.95 a share, $6.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $37.64 | $4.9B |
| Median | 40% | $45.95 | $6.0B |
| High end (a quarter paid more) | 60.2% | $52.58 | $6.9B |
The odds, from history
Historically 3.4% of companies with its figures were bought within a year (0.69× the average). Its figures put it in decile 3 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Paymentus Holdings' latest quarter
Paymentus Holdings, Q3 2026: revenue $372M (+20% year over year), operating margin 9.0%, net earnings $27.5M, operating cash flow $43.6M. The chart follows the revenue to costs, profit and cash.
Questions
Is Paymentus Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Paymentus Holdings?
A leveraged buyout at today's price plus 30% ($42.67 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Paymentus Holdings cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Paymentus Holdings would cost about $45.95 a share, $6.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.