Italian job

5 October 2020 By Lisa Jucca Follow @LJucca

Nexi is buying government-controlled Sia to create a 15 bln euro national champion ready to expand in the fast-consolidating sector. State investor CDP will own 25% but appoint nearly half of the board. It’s another market test for Rome’s push for influence over key industries.

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Italian payments providers Nexi and Sia said on Oct. 5 they had agreed to merge to create a sector heavyweight with an equity value of over 15 billion euros.

The all-share deal envisages Sia shareholders receiving 1.5761 Nexi shares for each Sia share they own.

The two companies said the deal will create annual synergies of 150 million euros, including 100 million euros in lower operating expenses and 15 million euros in lower capital spending. The merged group will also benefit from one-off capex savings of 65 million euros.

The new group will have combined revenue of 1.8 billion euros and EBITDA of 1 billion euros based on pro-forma 2019 aggregate data.

Italian state investor Cassa Depositi e Prestiti, which currently controls Sia, will own just over an 25% of the new group. Mercury UK HoldCo, a vehicle created by private equity groups Advent International, Bain Capital and Clessidra, and currently Nexi’s largest shareholder, will own around 23%.

After the deal, Sia’s shareholders, including CDP, will have the right to appoint five or six of the company’s 13 board directors.

Nexi shares were up 3.6% at 17.5 euros by 0820 GMT on Oct. 5.

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