FinTech solutions and payments provider Euronet Worldwide, Inc. said on Tuesday (March 16) that it has struck a deal to buy the Piraeus Bank Merchant Acquiring (PBMA) operation of the Greek financial institution (FI) Piraeus Bank, according to a press release emailed to PYMNTS.
A separately negotiated business arrangement for a long-term strategic collaboration for product distribution, processing and client referrals was included with the deal. Euronet anticipates that the transaction, which is subject to “customary regulatory approvals and closing conditions,” will close this year, according to the announcement.
After the transaction is completed, Euronet will serve as Piraeus Bank’s exclusive long-term partner for the provision of merchant acquiring services to the bank’s clients. The acquisition is the newest agreement between the two companies, which share a “longstanding collaborative relationship.”
“We are confident that the stability of Euronet, combined with its ability to innovate, will provide a reliable partner for our customers, as well as new opportunities for our institution to expand its payment acquiring capabilities in the changing payments landscape,” Piraeus Bank CEO Christos Megalou said in the announcement.
It is anticipated that the PBMA business will contribute roughly $80 million to $90 million of revenue and $15 million to $20 million of EBITDA to Euronet’s operating results in the first complete year of operations.
“This acquisition from a trusted partner was a logical fit to our overall growth strategy,” Euronet Chairman and CEO Michael J. Brown said in the announcement. “Because of our prior relationship, we understand the technology, which will ensure a smooth transition from the bank’s systems to ours.”
In separate news, the European Commission (EC) recently provided an unconditional authorization for the $9.28 billion (€7.8 billion) purchase of Denmark’s Nets by Italy’s Nexi. Nexi offers payment services for retailers, cardholders and banks, while Nets focuses on merchant acquiring services, point-of-sale (POS) terminals and card processing. The combined entity would become Europe’s biggest payments firm by volume, with end-to-end payments capabilities and expanded offerings
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