Having announced that Worldline reached an agreement with Equens on a transaction that will see Worldline receive 63.6% of newly created Equens shares in exchange of the merger, PCM takes a look at the structure of the deal and the new group.
Equens Worldline Company will become the largest pan-European financial processor, targeting 2016 revenue of c. €700 million and OMDA of c. €120 million, managing approximatively 100 million payment cards and employing 3,000 experts in payment.
Worldline has also agreed with Equens to acquire its commercial acquiring subsidiary PaySquare for €72 million in cash, corresponding approximately to 12.5 times 2015 estimated EBITDA. The PaySquare business will be integrated in Worldline Merchant Services & Terminals Global Business Line.
The transaction is structured in two components:
- An asset/share deal in Financial Processing, by merging the processing activities of the two companies in Europe to create “Equens Worldline Company”, to be owned 63.6% by Worldline and 36.4% by the current Equens shareholders;
- A deal in cash in Commercial Acquiring, where Worldline will acquire 100% of PaySquare from Equens for € 72 million.
The transaction expected to be accretive to EPS as soon as 2018, thanks to a minimum c. €40 million of run-rate synergies expected in 2018, half of which in 2017. Closing expected in the course of Q2 2016.