Blackstone To Acquire 80% Stake in Sony Payment Services for $280M

In a strategic financial manoeuvre, Blackstone Inc., the world’s largest alternative asset manager, is poised to acquire an 80% stake in Sony Payment Services, a subsidiary of the iconic Sony Group. This groundbreaking deal, valued at $280 million, is expected to be officially unveiled soon, adding a new chapter to financial technology investments.

While Blackstone and Sony Payment Services have remained tight-lipped about the deal, insiders have revealed that an announcement could be imminent. The acquisition signifies a remarkable step forward for Blackstone as it marks its first private equity venture in Japan in two years and its maiden entry into the financial technology sector.

Sony Group, renowned globally for its cutting-edge electronics and captivating entertainment offerings, has quietly nurtured a financial services arm. This arm includes Sony Bank and its subsidiary, Sony Payment, which is at the heart of this acquisition. Interestingly, Sony Bank will retain a 20% minority stake in the payment business, with a total valuation of an impressive 50 billion yen (equivalent to $350 million).

The timing of this transaction is noteworthy, as it aligns with the broader trend of Japanese corporations shedding non-core business holdings. Many such businesses are sold to investors eager to enhance their value. Recent examples include Panasonic Holdings’ decision to divest a portion of its automotive systems unit to an affiliate of Apollo Global Management.

Like Block’s Square, Sony Payment Services offers payment processing services to business clients. This niche market holds significant potential in Japan, where nearly two-thirds of payments are still in cash, indicating considerable room for growth in electronic payments.

For Blackstone, this venture marks a significant departure from its traditional investments in Japan, primarily concentrated in the healthcare segment. Notably, Blackstone’s recent announcement of its acquisition of pet care online marketplace Rover for a staggering $2.3 billion underscores its enthusiasm for businesses that cater to evolving consumer demands.

Tushar Gupta, a principal at Blackstone, expressed optimism regarding the Rover acquisition, stating, “We believe Rover has a significant runway for growth as pet owners increasingly place a premium on high-quality care, flexibility, and convenience.”

In conclusion, Blackstone’s impending acquisition of Sony Payment Services for $280 million is not just a financial transaction; it is a significant move towards harnessing the potential of the financial technology landscape in Japan. As the world transitions towards a cashless society, this investment could propel Blackstone and Sony to heights in the evolving financial services industry.