Blackhawk Network Acquires CashStar for $175 Million

Blackhawk Network, a publicly traded company that operates in the prepaid gift card and payments sector, announced that it has acquired prepaid ecommerce solution provider CashStar.

CashStar, founded in 2007, provides gift card commerce solutions. The CashStar Commerce platform is used by merchants, and the CashStar Exchange platform is used by gift card distributors and loyalty programs to procure and deliver gift cards from hundreds of leading brands. CashStar clients include Sephora, Starbucks, The Home Depot, Uber, and Walmart.

“The acquisition strategically enhances Blackhawk’s ability to provide the right digital solutions to our partners to meet the changing needs of business customers and consumers,” said Talbott Roche, CEO and president of Blackhawk Network. “With the addition of CashStar, Blackhawk is now a leading provider in the fast growing first-party digital market.”

Prior to the exit, CashStar had raised $44 million from such investors as North Hill Ventures, Intel Capital, and Passport Capital.