Under the MoU, Nexi will pay €157m for the stake, implying an evaluation of €307m on the total acquiring book. The new entity (NewCo) is expected to generate approximately Euro 93 million and Euro 18 million of revenues and EBITDA, respectively in 2022.
Alpha Services and Holdings S.A., the 100% parent company of Alpha Bank S.A., and Nexi S.p.A. announce the launch of a strategic partnership in the payments acceptance space in Greece with the signing of a Memorandum of Understanding (“MoU”), on 3 August 2021, with respect to:
. The spin-off of Alpha Bank’s merchant acquiring business unit into a new entity (“NewCo”) in which Nexi will acquire a 51% stake for a Euro 157 million cash consideration reflecting an Enterprise Value (EV) of Euro 307 million (for 100% EV of Alpha Bank’s merchant acquiring business unit respectively) plus an earn-out up to Euro 30.6 million (corresponding to an overall amount of Euro 60 million for 100% EV), contingent on the achievement of certain financial targets of NewCo within its first four years of operations (the “Transaction”).
. Entering into a long-term distribution agreement, providing the NewCo with access to Alpha Bank’s Network in order to distribute payment acceptance products and services to business Customers of Alpha Bank in Greece.
The total upfront consideration corresponds to an EV for 100% of Alpha Bank’s merchant acquiring business unit equal to Euro 307 million, subject to customary adjustments as of the date of completion of the Transaction. The consideration can be increased by up to Euro 60 million (for 100% EV of Alpha Bank’s merchant acquiring business unit) in the form of earn-outs, payable by the fourth year of operations of NewCo and subject to the achievement of certain financial targets to be agreed between Alpha Bank and Nexi.
In exchange for the access to its Network, Alpha Bank will receive referral fees from the NewCo, further supporting the Bank’s fee & commission income over time. The Transaction forms part of Alpha Bank’s announced business plan, “Project Tomorrow”, and is expected to contribute in excess of c.40 bps to Alpha Bank’s Common Equity Tier I as of 31 March 2021.
Following completion of the Transaction, Nexi will consolidate the NewCo, which is expected to contribute over 150,000 POS terminals and Euro 9 billion of volumes. NewCo is expected to generate approximately Euro 93 million and Euro 18 million of revenues and EBITDA, respectively in 2022, on a pro-forma basis1 and pre-synergies.
The Transaction is expected to close in Q1 2022.
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:
