Italy-based payment technology firm Nexi and Denmark-based digital payments provider Nets have signed a framework agreement to combine their businesses through an all-share merger.
Nets is one of the major integrated pan-European PayTech companies with a strong footprint in the Nordics.
Through its two business units, the company serves over 740,000 merchant revenue generating units (RGUs), over 40 million cards and more than 250 financial institutions.
It also handles over €125bn card payments annually in the acquiring segment.
The current framework agreement is the latest development after the companies announced the beginning of a 10-day exclusivity period, on 2 November 2020, to reach a potential binding agreement for the merger.
Also, the framework agreement follows Nexi signing a Memorandum of Understanding (MoU) for the business combination with SIA, which is not directly related to the merger.
The two different transactions are not associated with each other but are expected to contribute to the creation of a new combined European PayTech firm.
The deal values Nets at €7.8bn
Under the terms of the merger, Nets is valued at an enterprise value of €7.8bn and an equity value of €6bn, based on Nexi’s share price of €14.71 as of 13 November 2020.
The strategic combination will be executed as an all-share merger whereby Nets’ shareholders will receive about 406.6 million new Nexi shares.
Once the two transactions are closed, the new combined company is expected to become one of the top European PayTech firms with increased scale, reach and capabilities.
The new combined company is expected to provide enhanced future-proof innovative payment solutions across payment rails and channels.
Nets CEO Bo Nilsson said: “This transaction marks an important milestone in Nets’ journey to become a European payments champion, from our beginning as a domestic player in Denmark and Norway to our evolution into a pan-European payments pure-play operator.
“Through constant innovation, and driven by the tremendous efforts of colleagues, Nets has re-shaped the Nordic and broader European payments landscape, in creating ever more valuable solutions for our customers and stakeholders.”
