Nexi S.p.A. (“Nexi”), the PayTech leader in digital payments in Italy, and SIA S.p.A. (“SIA”), the Italian and European leader in payment technology and infrastructure services, signed a memorandum of understanding regarding the integration of the two groups through the merger by incorporation of SIA into Nexi.
The entity resulting from the merger (the “New Group”) will remain listed on the MTA and „will be the new Italian PayTech leader in Europe,” according to the press release.
The New Group will cover the entire value chain of digital payments serving all market segments with the most complete and innovative set of solutions: from digital payments acceptance services for small and large merchants, to more sophisticated omni-channel and e-commerce solutions, from issuing and management of all type of cards to mobile payments apps, from B2B digital payments solutions to open banking, from local public transportation solutions to banking networks as well as clearing and trading services for the main Italian and International Institutions.
The transaction will create a European champion in digital payments, with ~ €1.8 billion pro-forma aggregated revenues and ~ €1 billion EBITDA as of December 31st, 2019.
The New Group, also thanks to SIA, will be the largest Group in Continental Europe by number of merchants, by number of cards, by number of acquiring transactions and number of cross-border payment transactions, with ~2 million merchants, ~120 million cards, and an overall number of processed annual transactions equal to more than 21 billion.
This new international excellence, stemming from the combination of two companies that have been partnering for over a decade, will have a workforce of 5.5 thousand individuals in 15 countries, of which over 4 thousands dedicated to the Italian technological and digital innovation hub, essential for the technological development of the Country.
In an attractive market where digital payments, although still growing, have a penetration of 24%, the New Group will be able to seize all the organic growth opportunities with the aim of accelerating, together with the partner banks, the adoption of digital payments to the benefit of citizens, enterprises and Public Administration.
Based on current trading prices, the New Group will have an aggregate capitalization of over €15 billion, becoming one of the ten largest companies by capitalization on the Italian market.
The CEO of Nexi, Mr Paolo Bertoluzzo, commented: “This transaction will create a large Italian PayTech company leader in Europe, a great technological and digital excellence with scale and capabilities to play an increasingly leading role in Italy and at an international level in a market, like the European one, that sees strong consolidation trends.”
In turn, the CEO of SIA, Mr Nicola Cordone, declared “This operation will contribute to accelerate our Country on the path of digitalization towards a cashless society. This is in line with the mission we have worked on with pride, commitment and dedication for the past 40 years, putting citizens, enterprises, financial institutions, central banks, and the Public Administration at the center of the payment systems revolution.”
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:
