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SIA to buy First Data’s card processing businesses in Central and Southeastern Europe

BBR Staff Writer Published 28 May 2018

SIA, a provider of payment infrastructure and services, has agreed to acquire First Data’s card processing businesses in parts of Central and Southeastern Europe for €375m.

SIA has acquired the businesses offering card processing, card production, call center and back-office services, including 13.3 million payment cards and 1.4 billion transactions.

The acquired businesses are also involved in the management of POS terminals and ATMs.

The businesses acquired by SIA are situated in seven countries such as Greece, Croatia, Czech Republic, Hungary, Romania, Serbia and Slovakia.

Last year, the divested businesses generated combined revenue of around €100m for First Data.

SIA CEO Massimo Arrighetti said: “SIA is further strengthening its position in the e-payments international market, increasing its market shares in e-money high-growth countries.”

As part of the deal, around 1,400 employees from First Data will join into SIA.

SIA said the deal will turn it as one of the major players in processing and services in the region.

First Data is focusing more on its European issuer processing business, serving significant client base with its VisionPLUS platform.

Subject to normal closing conditions, the deal is expected to complete in the third quarter of this year.

Deutsche Bank and K&L Gates served as financial advisors and counsel to First Data on the deal, while HSBC served as financial advisor to SIA, White & Case as legal advisor and PWC as tax and accounting due diligence advisor.

First Data chairman and CEO Frank Bisignano said: “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.”

“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.”

Image: SIA CEO Massimo Arrighetti. Photo: courtesy of SIA S.p.A.