Payment Industry M&A Monthly Update, December 2013

2013 was a remarkable year for the payment industry. A lot of significant developments happened in this year in the field on non-cash payments technology. In the last month of the year itself eleven transactions with total disclosed value of $917m took place. Of these, seven were in US, two in Germany, and one each in UK, and Italy. Seven transactions were domestic and two were cross border acquisitions.

Key highlights include acquisitions by large players (like Paypal, Amazon, and Square Inc.) of companies offering mobile apps or provide platforms to develop mobile apps (including StackMob, GoPago

M&A in payment industry in December 2013

Notes - Date is announcement date of the transaction; Source: Company press releases and Financial Databases

Acquisition rationale

  • Blockchain acquiring ZeroBlock: Blockchain acquired ZeroBlock because it fits in with its very ambitious future goals in the bitcoin space, and will play a pivotal role in helping bitcoin users follow market trends. The acquisition also intends to open up new revenue sources. ZeroBlock is the most-reviewed and highest-rated bitcoin app on the Apple iOS App Store and on Android
  • Amazon acquiring GoPago (Pasadena Technology): With this acquisition Amazon intends to expand its mobile payments service into brick-and-mortar merchants and deliver better offers and deals. In addition, Amazon also aims to benefit from high synergy between the products
  • DoubleBeam Inc. acquiring GoPago Inc.: DoubleBeam acquired GoPago to add Integrated mobile POS payments to its existing services which include mobile-based eCheck and remote deposit capture
  • Klarna AB acquiring Sofort AG: With this acquisition Kalmaintends to become one of the leading independent European online payment providers and take on larger rivals such as PayPal, Visa and MasterCard. The combined entity will operate in 14 European countries and will have 25 million users and partnerships. It will work with 43,000 online merchants, including more than 50% of Germany's online merchants. Deal value (U$ Mn) = 150
  • PayPal Inc. acquiring StackMob Inc: The acquisition will help PayPal to increase its presence in mobile commerce apps and enhance its mobile payments offerings, including in-store mobile payments. It will also accelerate PayPal’s innovation in mobile payments
  • WestView Capital Partners acquiring Apex Information Technologies: WestView (a PE firms) investment in Apex Information is line with WestView’s strategy of investment in premium caliber management teams with deep sector experience and relationships. WestView also aims to take advantage ofsignificant opportunities in the sector
  • Spindle acquiring Yowza: With this acquisition Spindle will increase its reach to nearly 2 million customers and will expand its roster of participating merchants to approximately 95,000 locations. Spindle also plans to integrate Yowza’s services with its MeNetwork platform, which allows merchants to facilitate payment processing and manage customized marketing campaigns in a standalone interface
  • Square Inc. acquiring Minetta LLC: Square (a mobile payment company) acquired Minetta to combine its expertise and produce stylish mobile applications
  • NCR Limited acquiring Alaric Systems Limited: The acquisition is in line with NCR’sstrategy to transform its financial services business and become a global FinTech solutions provider. NCR aims to enable retail banks to deliver on the promise of omni-channel capabilities. Deal value (U$ Mn) = 84, EV/Sales = 5.3, EV/EBITDA = 35.2
  • Blackhawk Network Holdings Inc. acquiring Retailo AG: With this acquisition Blackhawk adds over 40,000 new distribution locations, bringing its total EMEA retail distribution network to approximately 70,000. The deal is part of Blackhawk’s strategy to serve consumers’ demand for gift cards and prepaid solutions across Europe, including Germany where Blackhawk has had limited presence. Deal value (U$ Mn) = 68
  • Group of Investors (FondiItaliani per le infrastrutture SGR; OrizzonteSgr; FondoStrategicoItaliano) acquiring SIA S.p.A.: PE firms acquired 59.3% stake in SIA. This acquisition will enable SIA to further strengthen its position in the sector and support its growth both organic and through add-ons. Deal value (U$ Mn) = 615, EV/Sales = 2.2, EV/EBITDA = 8.5

About FA team

FA team is a team of financial analysts setup to track payments & commerce industry. The team consists of CFAs and MBAs who have worked on supporting Top 10 and Mid-Market Investment Banks, PE firms and financial research agencies. The team has tracked more than 30,000 transactions since 1998 in the payment space

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