Payment challenge

20 December 2019 By Lisa Jucca Follow @LJucca

Months after listing, Italian leader Nexi has spent 1 bln euros on Intesa’s merchant acquiring business. Buying state-backed peer SIA to forge a 13 bln euro European champion could be next. Bulking up while Rome is pushing measures to curb the use of banknotes makes sense.

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Italian payments group Nexi said on Dec. 20 it had agreed to buy the merchant acquiring business of bank Intesa Sanpaolo for 1 billion euros. The deal will add around 95 million euros to Nexi’s EBITDA next year. Intesa Sanpaolo will re-invest part of the proceeds to buy a 9.9% stake in Nexi.

Mercury UK HoldCo, the vehicle created by private equity groups Advent International, Bain Capital and Clessidra which controls Nexi, said on Dec. 13 it had held discussions with local rival SIA over a possible tie-up. The talks “remained at a very preliminary stage.”

Nexi listed in Milan in April. Its shares have risen by around 30% from the IPO price of 9 euros a share.

SIA, which owns payment infrastructure, is 83%-owned by Italian state investor Cassa Depositi e Prestiti and postal services operator Poste Italiane, which is also controlled by the state.

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