SIA and First Data have signed an agreement for SIA to acquire First Data’s card processing businesses in parts of Central and Southeastern Europe for €375 million. In 2017, these businesses generated a combined revenue of approximately €100 million for First Data.
SIA makes €375 million acquisition of First Data’s European card processing unit
This acquisition by SIA provides card processing, card production, call center and back-office services, including 13.3 million payment cards, 1.4 billion transactions, in addition to the management of POS terminals and ATMs. These businesses are primarily located in 7 countries: Greece, Croatia, Czech Republic, Hungary, Romania, Serbia and Slovakia.
First Data remains highly committed to the European issuer processing business, maintaining its focus on serving its significant client base, primarily with its leading VisionPLUS platform.
As a result of the transaction, SIA will become a leading player in processing and services in the region. The agreement includes the transfer of about 1,400 First Data employees into SIA.
“This acquisition is in line with our strategy to become the leading European independent digital payments platform. SIA is further strengthening its position in the e-payments international market, increasing its market shares in e-money high-growth countries,” comments Massimo Arrighetti, CEO of SIA.
“In particular, in Central and Southeastern Europe we will become the foremost technology provider in a market that in the coming three-year period will see a rise in payment transactions of over 11% per annum, nearly double the growth of Europe at 6%,” continues Nicola Cordone Deputy CEO, Senior Vice President Global Business Solutions of SIA.
“With this acquisition, SIA’s revenues, on a 2017 pro-forma basis, will increase by around 18% with a significant surge in income from outside Italy, which will rise from 20% to 33% of the total.
Our major business activities will also see an acceleration with a growth of 23% in payment transactions, 18% in cards managed, 107% in POS terminals and 56% in ATMs.
The acquisition will also have positive effects on the increase in payment volumes processed on our technology platforms, enabling SIA to achieve greater economies of scale and to propose itself as innovative partner at pan-European level.”
The deal is expected to close in the third quarter of 2018 and is subject to normal closing conditions.
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