Advent Buys Majority Stake In Argentine Card Issuer

Advent International has announced that it is acquiring a majority stake in Prisma Medios de Pago, Argentina’s leading payments company.

Advent is buying the 51 percent from a group of 14 Argentinian banks and Visa International. Prisma Medios de Pago’s existing shareholders will hold onto a 49 percent stake in the company. The transaction, which is expected to closed this month, values Prisma Medios de Pago at $1.42 billion.

“Prisma Medios de Pago is the leading player in a market poised for strong growth driven by the increasing penetration of electronic payments in Argentina,” Juan Pablo Zucchini, a Managing Partner at Advent International in São Paulo, said in a press release. “We look forward to working with the management team and other shareholders to accelerate the company’s development by investing in next-generation products and services and exploring international expansion opportunities.”

Prisma Medios de Pago is one of the largest payments companies in Latin America. Within Argentina, it is No. 1 in merchant acquiring, payments processing, and electronic bill payments (Pagomiscuentas), and it is the No. 2 ATM operator, serving major banks around the country.

“We are pleased to welcome a leading global investor such as Advent International as a new shareholder,” said Diego Maffeo, President and CEO of Prisma. “Advent brings deep sector expertise, a broad international network and significant financial resources to support our continued growth and leadership in payments, both in Argentina and beyond.”

This deal marks Advent International’s sixth investment in Argentina, and the company’s eighth investment in the payments sector globally since 2008.

“We have been following Prisma Medios de Pago closely for some time and have been impressed by its growth and strong market position across the entire payments value chain,” said Chris Egan, a Managing Partner at Advent International in Boston. “We are excited to partner with the company’s local bank owners to create value for all stakeholders.”