In a recent development, the European Commission has granted clearance to the proposed $9.28B (approx €7.8B) merger between Nets and Nexi. According to EC, the antitrust clearance is unconditional and does not require any commitments from the parties.
According to Reuters, this merger will create the largest payments group of Europe.
All you need to know about the merger
Back in November 2020, Nexi, a Milan-based paytech company, and its Denmark rival Nets negotiated an “all-share” merger deal that would establish a large payments platform for the pan-European market. The deal was announced a week after Nexi purchased SIA for €4.6 billion in shares.
Under the deal, Nets shareholders will receive 406.6 million newly issued Nexi shares, resulting in a pro forma ownership of 39 per cent in the combined entity, or 31 per cent of the enlarged group including SIA.
According to Reuters, the U.S Group Global Payments was aiming to acquire Nets before Nexi, however, it didn’t work out.
The new combined group encompassing Nexi, Nets, and SIA (the “New Group”) will offer enhanced future-proof innovative payment solutions across payment rails and channels, underpinned by a best-in-class technology stack and professional capabilities.
Furthermore, the New Group will leverage a strong complementary presence across both the most digitally-advanced and under-penetrated geographies in Europe.
According to Nexi, the two transactions would create a group with Pro-forma 2020 revenue of €2.9B and a core profit of €1.5B, the largest at a European payments business.
Nexi – aims to digitalise the Italian economy
Italian company Nexi provides an end-to-end omnichannel technology that connects banks, merchants, and consumers enabling digital payments. The company aims to simplify payments and digitalise the Italian economy.
Listed on MTA of Borsa Italiana, the company has already partnered with 150 banks. The platform operates in Merchant Services & Solutions, Cards & Digital Payments, and Digital Banking Solutions.
Nets – Helps banks, merchants, and corporations
Based out of Copenhagen, Nets helps banks, merchants, and corporations accept and process credit/debit cards and online payments across the Nordic region. In 2017, Hellman & Friedman LLC acquired Nets for $5.3B (approx €4.5B).
Under the new ownership, Nets has undergone significant transformation and investments resulting in the accelerated growth of its core business, both organically and through strategic M&A.
Nets serve over 740,000 merchant RGUs, over 40 million cards, and more than 250 financial institutions and handle over €125 billion card payments annually in the acquiring segment.
In 2018, Nets expanded its footprint to structurally attractive payment markets through the Concardis merger in Germany, Austria, and Switzerland.