SIA, an European high-tech leader in payment infrastructure and services, has acquired First Data Corporation’s card processing businesses in parts of Central and Southeastern Europe for EUR 387 million.
In 2017, these businesses generated a total revenue of approximately EUR 100 million for First Data.
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 and there are primary 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.
“We’re particularly delighted and proud to have successfully completed the acquisition of First Data’s card processing businesses in Central and Southeastern Europe, making us the number one player in the region. The acquisition will increase SIA’s revenues, on a 2017 pro-forma basis, by around 18 percent with a significant surge in income from abroad, which will rise from 20 to 33 percent of the total, now reaching EUR 670 million. This represents a significant step in our strategy to become the leading European independent digital payments provider,” said Deputy SIA CEO Nicola Cordone.
The deal is expected to close in the third quarter of 2018 and is subject to normal closing conditions.
“This transaction aligns with our focus on portfolio management. While these are solid businesses, aspects of their operations are no longer core to our strategy, and this sale allows us to deploy the proceeds to create value in line with our capital allocation priorities,” said Frank Bisignano, Chairman and CEO of First Data.
Deutsche Bank and K&L Gates were respectively financial advisors and counsel to First Data on the transaction.
HSBC acted as financial advisor to SIA, White & Case as legal advisor and PWC as tax and accounting due diligence advisor.