⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Scandinavian payments group Nets to merge with German peer Concardis

Published 04/06/2018, 11:48
Updated 04/06/2018, 11:50
© Reuters.  Scandinavian payments group Nets to merge with German peer Concardis
WLN
-

FRANKFURT (Reuters) - Scandinavian payments group Nets is planning to merge with German peer Concardis in a multi-billion euro transaction, adding to a string of deals in the rapidly consolidating industry.

The deal will create a business with annual earnings before interest, tax, depreciation and amortisation of 500 million euros (438 million pounds) on 1.3 billion euros (1.1 billion pounds) of revenues, the two private equity-backed companies said on Monday.

For decades, payments firms existed as a backwater in the banking landscape. Usually set up by banks, they enjoyed a cosy relationship with them as customers but had few funds at their disposal to invest in technology.

As well as investing in innovation, payments companies now also need scale to navigate increasing regulatory complexity, which has been a driver for M&A activity in the sector.

As part of the deal, Concardis' private equity owners - Bain and Advent - will receive Nets shares for their holdings in Concardis, while Hellman & Friedman's Nets shareholdings will be diluted.

Both Concardis and Nets were only acquired by the private equity groups last year.

Concardis was valued at about 700 million euros in the January 2017 deal, sources close to the matter said at the time, while Hellman & Friedman announced the acquisition of Nets for 33.1 billion Danish crowns (3.9 billion pounds) in September.

In other recent deals, Worldline (PA:WLN) bought Swiss peer SIX Payment Services in May, a target which Nets had also vied for.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.