Ingenico Group announced it signed a deal with DSV Group (Deutscher Sparkassenverlag), a subsidiary of the Sparkassen-Finanzgruppe, regarding the combination of BS PAYONE with Ingenico Retail assets in DACH (Germany, Austria, Switzerland). This non-cash business combination, at a time when transaction multiples keep on rising, will be 52% owned and controlled by Ingenico Group.
Within the DACH region, Germany, which is the main exposure of BS PAYONE, is the third largest market in Europe and the most dynamic country in the region in terms of electronic payment. With predominant cash transactions representing more than 70% of the overall transactions, cashless volumes are accelerating and should grow by 7% over the next five years. It offers strong growth perspectives for those players who are able to provide comprehensive and end-to-end electronic payment acceptance solutions to merchants.
Headquartered in Frankfurt, BS PAYONE is a leading full-service payment provider offering instore and online payment solutions and employing around 700 people. Serving more than 250,000 merchants in various industries, from small and medium-sized businesses to large international accounts, BS PAYONE is the second largest international card acquirer in Germany and a major Network Service Provider (NSP), with a volume of over €50 billion processed, of which €27 billion is from international card acquiring, and more than 135,000 point-of-acceptance devices.
BS PAYONE benefits from close partnerships with the savings banks (“Sparkassen”) in Germany. In 2017 BS PAYONE generated €324 million in gross revenues6 and €31m EBITDA6.
The joint venture would have a unique footprint in DACH with a combined volume processed of €125 billion and close to 335,000 point-of-acceptance devices. The combined entity would have generated a gross revenue6 of over €500 million and an EBITDA6 of c.€75 million in 2017.
Over the period 2017-2021, the combined entity is expected to grow at a low double digit CAGR in term of revenues and a high double digit CAGR in term of EBITDA. The ambition of the combined entity is to become the largest acquirer in DACH and to further consolidate its Network Service Provider (NSP) leadership. The combination between the two assets is expected to generate significant synergies of €30 million, largely realized by 2022.
The partnership will represent a significant milestone in the execution of Ingenico Group’s strategy:
. Create the clear market leader in the attractive German market with the broadest offering instore and online covering the specific needs of all types of merchants;
. Build an operational long-term partnership with the Sparkassen, including an 8-year lock-up;
. Develop the SMB offering by combining Ingenico and BS PAYONE portfolios while rolling-out Bambora’s customer-centric approach in the future JV;
. Offer end-to-end payment acceptance solutions to large accounts;
. Leverage Ingenico’s global infrastructure to capture growth potential in the region and beyond.
The closing is expected to occur during the first quarter of 2019, subject to approval from the relevant regulatory and antitrust authorities.
“I am proud to announce that we have signed the agreement with the Sparkassen-Finanzgruppe in order to create the undisputed leader in payment services in Germany, Austria and Switzerland. The Joint Venture between BS PAYONE and Ingenico Group will enable to create value through the combination of the respective portfolio of merchants and to accelerate the deployment of our Retail strategy across all channels within the DACH1 region, the largest growth opportunity in Europe.” says Philippe Lazare, Chairman and Chief Executive Officer of Ingenico Group.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
