SIA, a European leader in payment infrastructure and services, and First Data Corporation, a global leader in commerce-enabling technology, have signed an agreement for SIA to acquire First Data’s card processing businesses in central and Southeastern Europe for €375 million.
In 2017, these businesses generated a combined revenue of approximately €100 million for First Data.
The acquisition by SIA provides: card processing, card production, call centre, and back-office services. This includes 13.3 million payment cards and 1.4 billion transactions.
First Data remains committed to the European issuer processing business, maintaining its focus on servicing its significant international client base, primarily with its leading VisionPLUS platform.
Massimo Arrighetti, CEO of SIA, commented: “This acquisition is in line with our strategy to become the leading European independent digital payments platform. SIA is further strengthening its position in the e-payments international market, increasing its market shares in e-money high-growth countries.”
Nicola Cordone, deputy CEO, senior vice president, global business solutions of SIA, said: “Thanks to the agreement with First Data, SIA Group continues on its path of international growth, confirming its leadership at European level in a sector like that of electronic payments undergoing continuous consolidation.”
“In particular, in central and Southeastern Europe we will become the foremost technology provider in a market that in the coming three-year period will see a rise in payment transactions of over 11 percent per annum, nearly double the growth of Europe at 6 percent.”
Expanding on this, he said: “The acquisition will also have positive effects on the increase in payment volumes processed on our technology platforms, enabling SIA to achieve greater economies of scale and to propose itself as innovative partner at pan-European level”.
Frank Bisignano, chairman and CEO of First Data, commented: “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.”
He added: “We believe we have found an excellent partner for this transaction as SIA’s integrated payment infrastructure and service offerings and presence across Europe make it the perfect home for these businesses and puts our former customers in capable hands.”
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