Elavon says it will divest its Mexico-based operations to Santander. The deal, subject to regulatory approval, is expected to close in the next few weeks. Elavon currently provides payment processing solutions and services to more than 1.3 million customers in the US, Europe, Canada, Mexico and Puerto Rico.
Per the deal, all Elavon’s employees in Mexico, including operations and customer relationships, will be transferred to Santander. The company noted that the divesture is not expected to have any impact on its other operations.
Jamie Walker, CEO of Elavon, said “We have been pleased with the performance of our business in Mexico. This agreement is a mutually-beneficial opportunity that will allow Santander to operate the business holistically and allow Elavon to focus investments in higher growth opportunities in other markets in the United States, Canada and Europe.”
Earlier in April 2019, the Spanish bank announced its plan to hasten its growth in global payment initiatives by acquiring businesses and utilising the growth potential of its Brazilian subsidiary, Getnet. The acquisition of Elevon Mexico is part of the company’s strategy to accelerate its payment services. Elavon signed a strategic alliance with Banco Santander in 2010 through which they are operating the acquiring business in Mexico. The bank is expecting to widen its payment options for its sales to reduce the use of cash.
According to the deal, Santander Group will acquire all of the shares in Elavon México for MXN 1,600 million (approximately $86 million and €79 million). 49% of the company will be owned by Santander Mexico while 51% by Santander Merchant Platform Solutions (SMPS), which belongs to Santander Group.
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