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Wednesday 23 May 2018

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Worldline to buy SIX Payment Services for €2.3bn

Written by Peter Walker
16/05/18

European payments firm Worldline is set to acquire SIX Payment Services for €2.3 billion.

The payment services division of Switzerland’s SIX Group has around 1,600 staff in six countries, servicing more than 200,000 merchants both off and online.

Last November, as part of a strategic redirection, SIX announced that the cards business would be carved-out with the aim to enter a strategic partnership, as the European payments industry is consolidating.

The deal aims to create the largest European payments provider, with new technologies jointly developed and implemented. Romeo Lacher, board chairman of SIX, said: “This strategic partnership makes us Europe's leading and largest provider in one go.”

Worldline chief executive Gilles Grapinet said the merger is a major strategic step forward.

“Together, we will benefit 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,” he stated.

With revenues reaching an estimated €2.3 billion in 2019, the combined entity will reach 10 per cent of European market share in merchant acquiring and 20 per cent in financial services.

After the completion of the transaction, Atos would own 51 per cent of Worldline shares and SIX would become the second largest shareholder of the company.

The transaction comprises a 10-year commercial contract with SIX to deliver a wide range of processing services to the Swiss banking community. Worldline has undertaken in a related transaction to become a 20 per cent shareholder in TWINT, the Swiss next-generation bank owned mobile and P2P payment scheme, for a €25 million investment.

The deal is expected to close during the fourth quarter of 2018, after the finalisation of the carve out of SIX Payment Services from SIX Group.



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