Ingenico Group has entered into an agreement to acquire GlobalCollect from its existing shareholders headed by Welsh, Carson, Anderson & Stowe (WCAS), in a deal valued at 820m.
Amsterdam-based GlobalCollect directly offers merchants a complete, cross-border one-stop-shop payment solution by acting as a hub to multiple other payment providers in 170 nations and providing an access to 150 local payment methods.
Go deeper with GlobalData
GlobalCollect, which has a workforce of 500 people across the world, reported gross revenue of 305m, net revenue of 111m, and adjusted EBITDA of 50m during fiscal year 2013.
The proposed deal, if materialized, will rebalance Ingenico’s geographical footprint towards the North American market across the whole payment value chain, and strengthen access to APAC and LATAM high growth markets. Further it will offer enhanced access to 600 tier-1 online cross-border merchants.
It will also enrich the group’s value proposition to include electronic cash collection and settlement capabilities while significantly reinforcing its presence in the card not present space.
Ingenico Group CEO Philippe Lazare said, "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."
GlobalCollect CEO Tom Staudt commented, "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."
The transaction, which is expected to be financed with existing cash on balance sheet for 220m and bank debt of 600m, is likely to close in early fourth quarter of 2014, subject to approval from the relevant regulatory and antitrust authorities.
