The acquirer said that the takeover of the US based payment processor will result in a presence in Silicon Valley while leverage it to settle more online transactions.
As per the merger deal signed, Cielo has agreed to pay the corresponding of 11 times enterprise value to EBITDA for MeS while the deal is expected to close after satisfying certain closing conditions.
The takeover will enable Brazilian payment processor to diversify its services base amid a rapid expansion of debit and credit card use as well as e-commerce and mobile payments.
The advanced technology developed by MeS will provide Cielo greater process automation (back office), flexibility and agility in developing new products and consequently, lower time-to-market.
Currently processing over $14bn in transactions annually for more than 70 thousand affiliated retailers, in partnership with over 250 financial institutions, MeS offers a complete range of solutions both for the traditional acquiring as well as e-commerce and mobile payments.
As of 31 May 2012, MeS net revenues were $124m, an increase of 24% over the previous period, with an EBITDA margin of 45%.
