European payments company Worldline has formed a strategic partnership with FinTech solution developer SIX to acquire its Payment Services unit for €2bn.
SIX Payment Services supports a range of industries with commercial acquiring and financial processing. Its services include payment terminals, card acceptance, online payments, mobile payments, omni-channel solutions, and electronic invoices, among others. The company has a net revenue estimate of €530m for 2019, and is present in six countries.
The company decided to carve-out from SIX Group and form a strategic partnership late last year. With Worldline, SIX Payment hopes to combine each other’s technology to create the biggest European payments provider.
As part of the acquisition, 49.1 million new Worldline shares will be issued, representing 27 per cent of the share capital.
Through the merger of these companies it will bring an increased group revenue of 30 per cent and a 65 per cent rise in merchant services business, reaching more than €1bn annual revenue, according to the company. Geographic reach will also be expanded with more presence for Worldline in the DACH region.
Worldline CEO Gilles Grapinet said, “Together, we will beneficiate from reinforced industrial scale, numerous synergies and complementarities that will boost our development, our profitability and that will at the same time, enlarge significantly our offerings to our customers, strongly benefit to our shareholders while opening new professional development opportunities for our all our employees.
“Through this merger, our Company with its intact financial firepower and its unrivalled size in our continent, will be better positioned than ever to continue its strategic endeavor to build, in the heart of Europe, a new global leader of the payment industry.”
Earlier in the year, Worldline formed a partnership with identity verification and payment authentication company iSignthis. This deal was made to support Worldline’s digital identity capabilities and ensure AML/CFT compliance services.
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