Strengthened the role of independent PayTech company for Italian banks Milan

Nexi entered into an agreement with Intesa Sanpaolo regarding the purchase of its merchant acquiring activities, which strengthens the existing industrial partnership between the two companies.

The transaction, which takes place in the context of an increasingly competitive European market, is consistent with the strategic vision of Nexi – the independent PayTech company supporting Italian banks – and will contribute to accelerate the payments digitization process in Italy.

By acquiring Intesa Sanpaolo’s merchant acquiring business, Nexi will obtain a network of about 380,000 point of sale terminals at 180,000 businesses, generated a total volume of transactions equal to approximately Euro 66.2 billion.

The consideration payable will be equal to Euro one billion1.

The transaction will generate, in 2020, an expected increase in group EBITDA of approximately Euro 95 million and an high teens increase in cash EPS starting from 2020.

Thanks to this transaction, Nexi consolidates its positioning in the world of merchant services expanding the operational scale of merchant acquiring activities, while increasing revenue diversification and accelerating innovation among its customers. Nexi strengthens its role of PayTech company, an independent leader in the field of digital payments development in Italy, in partnership with banks.

Mercury UK HoldCo Limited, Nexi’s reference shareholder, communicated today that it signed a separate agreement with ISP providing for the sale to ISP of a stake equal to 9.9% of Nexi share capital, the completion of which is subject to the completion of the abovementioned transaction with Nexi.

“The agreement with Intesa Sanpaolo represents another important step in the development of Nexi’s strategy, that confirms itself to be a key partner for the banking system in the field of digital payments development, a leverage for the modernization of Italy”, commented Paolo Bertoluzzo, Nexi’s CEO, “the acquisition of Nexi shares by Intesa Sanpaolo represent for us a further signal of confidence in the Company’s development outlook and in its mission of being the PayTech company, an independent partner, of Italian banks”.

Nexi is the leading PayTech company in Italy, listed on MTA of Borsa Italiana and operate in strong partnership with approximately 150 partner banks. They integrated end-to-end omni-channel technology connects banks, merchants and consumers enabling digital payments.

Payments are simplify for clients and digitalize the Italian economy. Nexi operates in three market areas: Merchant Services & Solutions, Cards & Digital Payments and Digital Banking Solutions

Merchant Services & Solutions: Nexi, together with its partner Banks, serves c. 890,000 merchants and manages 1.4 million POS terminals;

Cards & Digital Payments: Nexi, together with its partner Banks, manages 41 million payment cards;

Digital Banking Solutions: Nexi manages 13,400 ATMs, approximately 420,000 e-banking workstations and over 900 million clearing transactions in 2018.

In addition, Nexi developed the open banking system in collaboration with the CBI consortium to which the main Italian banks have already adhered

Article: Joana Foglia – Source Nexi press release