Wednesday 21 August 2019

Mastercard agrees £2.6bn deal to buy part of Nets

The deal follows Mastercard’s move in 2016 to acquire London-based VocaLink.

Mastercard has agreed to buy the bulk of the corporate services business of European firm Nets for 2.85 billion euros (£2.6 billion) amid a push into faster payments.
Mastercard has agreed to buy the bulk of the corporate services business of European firm Nets for 2.85 billion euros (£2.6 billion) amid a push into faster payments.

By Holly Williams, PA Deputy City Editor

Mastercard has agreed to buy the bulk of the corporate services business of European firm Nets for 2.85 billion euros (£2.6 billion) amid a push into faster payments.

The deal, which is expected to complete in the first half of 2020, will see Mastercard snap up the clearing and instant payment services, and e-billing solutions of Nets’ corporate services arm.

Nets is a European payments technology firm, which is headquartered in Denmark and employs 3,500 staff across the group.

With its resources and global reach, Mastercard is uniquely positioned to unlock the potential of Nets’ account-to-account business Bo Nilsson, Nets

The deal follows Mastercard’s move in 2016 to acquire London-based VocaLink, which enables direct payments between bank accounts, for £700 million.

Michael Miebach, chief product and innovation officer at Mastercard, said: “This deal strengthens our unique position as the one-stop partner for any bank, merchant or government’s payment needs.”

He added that together with existing operations such as VocaLink, the acquisition boosts its “real-time payment capabilities, innovation and expertise”.

Bo Nilsson, group chief executive of Nets, said: “With its resources and global reach, Mastercard is uniquely positioned to unlock the potential of Nets’ account-to-account business.”

Mastercard admitted the deal will impact earnings for up to two years after it completes.

The move comes less than two years after Nets was taken private in a takeover by  a consortium led by private equity firm Hellman & Friedman for 33.1 billion Danish kroner (£4.1 billion).

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