Econostrum | Economic News in the Mediterranean



Merger of two Italian companies specialising in electronic payments

The new group will become a leader in electronic payments in Europe (photo: Nexi)
The new group will become a leader in electronic payments in Europe (photo: Nexi)
ITALY. The signing of a Memorandum of Understanding (MoU) between the two competing Italian companies Nexi and Sia, announced on Monday 5 October 2020, paves the way for a merger that will create a leader in electronic payments in Europe.

Nexi is one of Italy's major players in digital payments (PayTech). It will absorb Sia, which specialises in payment technologies and infrastructure services in Italy and Europe, controlled by Cassa Depositi e Pretiti (CDP) through its subsidiary CDP Equity (CDPE). Eventually, Nexi will own around 70% of the capital of the new entity, valued at over €15 billion on the Milan Stock Exchange, making it one of the ten largest companies by capitalisation on the Italian market. It will be headed by Paolo Bertoluzzo, Nexi's current CEO, who will become CEO and Managing Director. Michaela Castelli will retain the chairmanship of the Board of Directors that he held with Nexi. The current CEO of Sia, Nicola Cordone, will continue in office until the closing of the transaction.

Between them, Nexi and Sia currently claim a 70% market share in Italy. "The new group will cover the entire digital payment value chain, offering to all market segments: from digital payment acceptance services to small and large merchants, omni-channel and e-commerce solutions, issuing and managing all types of cards, mobile payment applications, B2B digital payment solutions, local public transport and banking network solutions, clearing and trading services for leading Italian and international institutions", says a release.

The group will be the leader in its sector in Western Europe with 120 million cards managed and the processing of payments from around two million merchants. Its cumulative turnover will reach €1.8 billion (at 31 December 2019) for a gross profit (Ebitda) of around €1 billion.

The transaction will be finalised by the summer of 2021.


Frédéric Dubessy

Tuesday, October 6th 2020

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