a) The sale of 80% of Eurobank's merchant acquiring business ("PayCo") to Worldline with Eurobank maintaining the remaining 20% and
b) A long-term agreement for the exclusive distribution of PayCo products in Greece through Eurobank's sales network.
Eurobank's merchant acquiring unit is a leading acquirer in the Greek market with 21% share of transaction volumes processed in Greece. It currently employs c. 40 employees and manages payments for 123,000 physical and online merchants with over €7 billion value of transactions.
In line with Eurobank's strategy to partner with best-in-class experts, the long-term agreement combines Worldline's global scale, best-in-class technologies and expertise with Eurobank's strong distribution network, aiming to deliver value added merchant acquiring products and services to Eurobank's customers and the market.
The agreement values 100% of PayCo at €320 million, subject to customary adjustments as of the date of completion of the Transaction. The transaction also entails an additional conditional payment, referral fees from PayCo and customary minority protection rights.
The transaction is expected to contribute ca. 80 bps to Eurobank's Group CET I ratio (based on Q3'2021 ratios).
The parties aim to close the Transaction by Q2 2022, subject to obtaining the relevant regulatory approvals.
Fokion Karavias, Eurobank's CEO said: "The agreement we reached with Worldline regarding the cards acquiring business is fully in line with our strategic plan to focus on our core activities, while further strengthening our capital base. Our clients will benefit from a prime customer experience in a secure transaction environment, provided by a world leader in payment services with the global reach and the cutting-edge digital capabilities required in a fast-moving, tech-driven sector."
Gilles Grapinet, CEO of Worldline, said: "I am very proud to announce the acquisition of Eurobank Merchant Acquiring. This operation is fully in line with our strategy to further expand our Merchant Services activities towards the South of Europe and at the same time allows us to leverage our footprint in Greece that was created earlier this year through the acquisition of Cardlink. The combination of both companies will create a meaningful and leading position in the fast-growing Greek market that is driven by the steady ongoing adoption of electronic payments. This transaction offers attractive development opportunities for Worldline in the coming years, building on our direct access to an existing merchants portfolio with a full suite of end-to-end payment solutions.
With Eurobank Merchant Acquiring, Worldline keeps on expanding in the European payments market beyond its existing borders, with a focus on value-creative consolidation opportunities, enhancing Worldline scale, reach and direct presence in a growing number of countries."
Barclays Bank PLC, acting through its Investment Bank, is acting as sole financial advisor to Eurobank. Bain & Company Italy, Inc. is acting as the business advisor to Eurobank. Linklaters LLP and Karatzas & Partners Law Firm are, respectively, acting as the international and local legal advisors to Eurobank.
