Ingenico and Deutscher Sparkassenverlag (DSV), have announced the finalisation of the combination of BS PAYONE, a Sparkassen-Finanzgruppe subsidiary, with Ingenico Retail assets in DACH (Germany, Austria, Switzerland) following the approval of the German competition regulator Bundeskartellamt and the Financial Supervisory Authority.
The joint-venture will create a leading payment provider in Germany, the third largest market in Europe and a promising country for electronic payment where cash transactions remain predominant.
The high degree of synergies between BS PAYONE positioning as the second largest international card acquirer in Germany and Ingenico within the SMB market as well as the large retailers, will enable the joint-venture to accelerate its development with a comprehensive offering covering the in-store and online needs of all types of merchant.
Over the period from now to 2021, the joint venture is expected to grow at a low teens CAGR in term of revenues and a high teens CAGR in term of EBITDA. The combination between the two assets is expected to generate significant synergies of €30 million, largely realised by 2022.
“The combination of our DACH assets provides a wide range of market offerings for today’s and future customers. Hence, it will be definitely a game changer in a region that offers such solid growth perspectives,” says Nicolas HUSS, the new Chief Executive Officer of Ingenico Group.
“Our strong positioning in the German market as Network Service Provider and the ongoing deployment of the Bambora model, coupled with the local footprint of BS PAYONE and the German Sparkassen will enable the Group to accelerate its direct-to-merchant strategy and to grow the Retail business unit.
We are confident that the new PAYONE division will create strong value to Deutscher Sparkassenverlag and Ingenico Group’s shareholders. All teams within Ingenico Group join me in welcoming the employees of BS PAYONE.”