Online payments group Paysafe said it has received a conditional offer from buyout groups Blackstone and CVC Capital Partners valuing the business at £2.9bn ($3.8bn).

It said the funds have offered to pay 590p a share in cash, according to an update released by the payments processing firm.

This roughly represents a 34% premium to the FTSE 250 group's average share price for the six months to the end of June, in a sector that has recently seen heighten consolidation activity.

It added that the private equity firms first approached the business to open talks in May.

Old Mutual Global Investors, Paysafe's largest shareholder with around 10.3% holding in the firm, has sent a letter of support for the offer.

Paysafe has grown its revenue seven times since 2011, a large proportion of which comes from handling gambling transactions for betting companies such as Ladbrokes and William Hill.

Under takeover code rules the buyout firms have until 18 August to table a bid, or walk away.

Payments companies have become targets for credit card companies and banks seeking to capitalise on a switch from cash transactions to paying by smartphone or other mobile device.

Earlier this month US credit card processor Vantiv made a £7.7bn bid for Britain's Worldpay, while Danish payment services firm Nets A/S revealed it had been approached by potential buyers.

In a separate statement, Paysafe said it had also agreed to buy US rival Merchants Choice Payments Solutions for $470m.