Global payments leader Mastercard has announced it has secured an agreement to acquire “the majority of the corporate services businesses” of European paytech company Nets for €2.85 billion.
The deal, predicted to close in the first half of 2020, subject to regulatory clearances, will see Nets’ clearing and instant payment services and e-billing solutions transition to Mastercard ownership.
Acquiring such services is expected to strengthen Mastercard’s existing account-to-account (A2A) capabilities – improving its infrastructure, speed, scale, data analytics and fraud protection.
“The global opportunity for real-time payments is accelerating,” explained Michael Miebach, chief product & innovation officer, Mastercard.
“This deal strengthens our unique position as the one-stop partner for any bank, merchant or government’s payment needs.
“The combination with existing Mastercard assets such as Vocalink, Transfast, and Transactis delivers real-time payment capabilities, innovation and expertise that are truly differentiated.”
It represents yet another major purchase in the payments ecosystem, following significant acquisitions from both FIS and Nuvei this year alone.
Once the deal has concluded, Mastercard’s A2A capabilities will extend into continental Europe with the aim to “match its capabilities” in the UK, Americas, Asia, Middle East and Africa.
“We are a multi-rail company – this deal further demonstrates the strength of our strategy, staying ahead of the changing landscape, delivering essential choice to banks, businesses and consumers,” added Miebach.
Nets’ corporate services business operates both managed services and software license models in several European markets.
Due to the firms presence in Scandinavia, Mastercard expects the deal will “bring an increased focus on innovation to customers in the Nordic region.”
“Over the past five years, Nets has built a strong account-to-account payments platform with a global growth opportunity,”
noted Bo Nilsson, CEO, Nets.
“However, to fully unlock its international growth potential beyond Nets’ existing geographical footprint requires the capabilities and resources of an established global leader.”
“With its resources and global reach, Mastercard is uniquely positioned to unlock the potential of Nets’ account-to-account business.
“The transaction increases our flexibility to play an active role in our sector’s consolidation. It also allows us to expand our leading position as a one-stop payment shop for merchants and a strong provider of processing services for banks across Europe.”
