Payments

Payment Industry M&A Monthly Update, January-February 2014

MEDICI

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Underlying an ongoing global shift toward non-cash payments and strong growth in non-cash transactions, this industry is witnessing a surge in M&A transactions across different verticals of non-cash payments like transaction processing, payment gateways, and mobile payments.

In the first two month of the year itself nine transactions with total disclosed value of $461m took place.  Of these, six were in US, and one each in Brussels, Denmark, and Finland. Five transactions were domestic and two were cross border acquisitions.

Key highlights include acquisitions by large players (like Global Payments, Bottomline Technologies, and MasterCard Inc) of companies offering transaction processing and mobile wallet services (including Payment Processing Inc, and C-SAM Inc)

Note

  1. Domestic transactions – Target and bidder companies are from same country
  2. Cross border – Target and bidder companies are from different countries

M&A in payment industry in January-February 2014

Untitled

Note

  1. Date is announcement date of the transaction

       Source Company press releases, FA team analysis

Acquisition rationale

1. MasterCard Inc. acquired C-SAM Inc.: With this acquisition MasterCard will speed up the development and deployment of mobile wallets and payment solutions globally, including the rollout of its MasterPassdigital service

2. Ingenico acquired Ogone: This acquisition represents a key milestone in the execution of Ingenico’s strategy of becoming the unique “one-stop-shop” provider covering multi-channel payment solutions: point-of-sale, online and mobile

3. TIO Networks Corp acquired Globex Financial Services: The acquisition significantly expands TIO's capabilities, customers’ network, and greatly strengthens TIO's presence in the Mid-Atlantic and Southeastern United States by adding key billers and over 3,000 additional transaction locations to TIO's growing national network

4. Visma ASA acquired Wallmob A/S: This acquisition will help Visma to attract customers to physical stores, expand its business in Northern Europe, and develop its portfolio of mobile and multi-channel solutions for retail businesses. Deal value (U$ Mn) = 18 5. NBS Payment Solutions Inc. acquired Equinox Payments LLC: The acquisition is in line with NBS Payment Solutions' strategy to expand its business. The combination of both the companies will improve the capabilities of both the companies to better serve their customers

6. Xoom Corporation acquired BlueKite: This acquisition will allow Xoom to offer adjacent services to their burgeoning money transfer offerings, ability to pay bills for their loved ones, top-up mobile phones and facilitate safe, reliable and accurate cross-border bill payments. Deal value (U$ Mn) = 15 7. Bottomline Technologies Inc. acquired Rationalwave Analytics Inc.: This acquisition will help Bottomline to provide innovative products to its customers and enhance its market value. Deal value (U$ Mn) = 8

8. Global Payments Inc. acquired Payment Processing Inc: The transaction is in line with Global Payments' strategy to expand its direct distribution, add new vertical markets, accelerate growth in its largest geography and enhance its existing integrated solutions business. Deal value (U$ Mn) = 420, EV/Sales = 5.3, EV/EBITDA = 35.2 9. SEB Kort acquired Nets (Business Eurocard business in Finland): With this acquisition, SEB becomes market leader for business credit cards throughout the Nordics. The transaction is in line with SEB strategy expand their card business in Scandinavia

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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MEDICI Team

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MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI team who collaborate to create FinTech insights.

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