March 25, 2014
4 years after purchasing Royal Bank of Scotland’s processing unit, PE firms Advent International and Bain Capital are at it again. This time the two US Based groups collaborated with Danish Pension Fund ATP Group to buy payment services company Nets Holding from a group of Nordic banks for $3.14 Bn (17 billion Danish crowns). After a strategic review last year, Nets (best known as the biggest in Card transactions) decided it should no longer be owned by its customers and needed money to invest in new systems. The two acquiring PE firms are quite bullish on payments sector as they also own WorldPay.
Nets handles payments in the five Nordic countries and has strong positions in Denmark and Norway. The company supports more than 33 million payment cards and over 500,000 merchants in the region, and handled more than six billion card transactions in 2013. After a strategic review last year, Nets decided that it should no longer be owned by its customers and needed money to invest in new systems.
Points to note:
'We see a compelling investment opportunity to transform Nets from a strong Nordic company into a Northern European leader within the payments industry,' said ATP’s Carsten Stendevad. The transaction is subject to regulatory approvals and is expected to close in Q2 this year.
'We think that Nets has great opportunities both organically and inorganically in focusing on the Nordics markets,' Robin Marshall, MD at Bain Capital. 'We certainly wouldn't rule out going into other countries, particularly those in the Nordic region where we don't have a strong presence currently, he added.
Also Read about how Nordic Countries are leading in payments Biggest Mobile Payments success story, and it was not written in the US