FRANCE - NETHERLANDS | Ingenico Group enters into exclusive negotiations to acquire 100% of the share capital of GlobalCollect from its existing shareholders for an enterprise value of €820 million.
Major Strategic Move for Ingenico Group
The acquisition of GlobalCollect would tremendously contribute to Ingenico Group’s strategy. It would considerably expand Ingenico's footprint in the North American markets and improve its position to tap into the high growth payments markets in the Asia-Pacific and Latin American region. At the same time it would strenghten its card-not-present offering, reach and knowledge, give Ingenico access to around 600 of world's largest online retailers and businesses, and pave the way to sell its Group's payment product and services offering (including smart terminals, mobile payments and payment services).
About GlobalCollect's Payment Platform - empowering Global Ecommerce
GlobalCollect - based in Amterdam, The Netherlands - is one of world's leading Payment Service Providers due to its recognized online payments expertise, especially regarding cross-border ecommerce. GlobalCollect provides merchants with a one-stop-shop payment solution by acting as a hub to multiple other payment providers across all continents. Its platform allows online retailers and businesses, including the most recognized brands of the world, to sell their products online, globally. The payment platform connects to payment providers and solutions in 170 countries and providing an access to 150 local payment methods. During fiscal year 2013, GlobalCollect reported gross revenue of €305 million and a net revenue of €111 million.
'Unrivalled geographical coverage, network and payment method offering'
The acquisition of GlobalCollect would enable us to accelerate the implementation of our strategy across all channels, on a global scale, especially in payment services and mobile payment”, said Philippe Lazare, Chief Executive Officer of Ingenico Group. “This is a great opportunity to maintain our time-to-market advantage to rapidly reinforce Ingenico Group’s position as a global leader in seamless payment. All in all, combining Ingenico Group and GlobalCollect would create a player with unrivalled geographical coverage, network of acquirers/banks and payment methods. And this would result in substantial value for our employees, customers and shareholders”.
'Ingenico Group is a perfect fit with GlobalCollect'
The planned acquisition by Ingenico Group is a perfect fit with GlobalCollect. Combining our global cross-border payment processing with Ingenico Group’s multi-channel services will create great opportunities for our clients, by reducing payment complexity across all channels and providing more payment alternatives to drive new sale opportunities. This is an exciting time to be in the payment industry and an even more exciting opportunity for GlobalCollect to be part of such a world class organization as Ingenico.” said Tom Staudt, Chief Executive Officer of GlobalCollect.
Acquisition should be completed by Q4 2014
The acquisition is expected to have an accretive impact in of around 15% on Ingenico Group’s EPS (before Purchase Price Allocation) in 2015. The transaction is expected to be financed with existing cash on balance sheet for €220 million and bank debt of €600 million. Final legal documentation would be signed in Q3 2014. The closing is expected to occur by early Q4 2014, subject to approval from the relevant regulatory and antitrust authorities.
Sourced from Ingenico Group, Press Release, July 2nd, 2014