Sabadell agrees to sell payments arm to Nexi for up to $370 mln (updated)

Litu Holdings

27/02/2023 17:58

* 
      Firms strike 10-year partnership that can be renewed
    

        * 
      Deal seen adding 30 mln euros to Nexi's core profit
    

        * 
      Sabadell to boost fully loaded CET1 ratio by 14 bps
    

  
 (Adds details on business acquired, advisers)
    By Jesús Aguado and Valentina Za
       MADRID, Feb 27 (Reuters) - Spanish bank Sabadell
 SABE.MC  said on Monday it had agreed to sell its retailers'
payments business to Nexi  NEXI.MI  for up to about 350 million
euros ($370 million), and struck a 10-year partnership with the
Italian payments firm.
    Under the deal, Nexi will buy 80% of Paycomet, Sabadell's
payments subsidiary, for 280 million euros, with the Spanish
lender retaining a 20% stake for at least three years.
    "After that period, Banco Sabadell will have an option to
sell its 20% stake and, as such, the total transaction amount
has been fixed at 350 million euros and may be increased
depending on the achievement of objectives," Sabadell said,
confirming a Reuters report from earlier this month.
    Nexi prevailed over rival Worldline  WLN.PA , sources said
then.
    The business that handles shopowners' payments is a source
of stable income for banks, but the need for hefty investments
has prompted an increasing number of banks to dispose of all or
part of their payments operations.
    The sale is expected to add 14 basis points to Sabadell's
best quality capital ratio when it closes in the fourth quarter,
the lender said.
    With the deal, Nexi will come to handle transactions worth
around 48 billion euros for more than 380,000 Spanish
shopowners, adding around 30 million euros of core profit based
on 2023 data, it said.
    The sale is at an enterprise value for the unit of 11.5
times earnings before interest, tax, depreciation and
amortisation.
    Barclays advised Sabadell. Rothschild and Jefferies were
financial advisers to Nexi which also worked with BCG, KPMG and
Allen & Overy.    
    ($1 = 0.9471 euros)

 (Reporting by Jesús Aguado in Madrid and Valentina Za in Milan;
Editing by Bernadette Baum and Mark Potter)
 ((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters
Messaging: Reuters Messaging:
jesus.aguado.reuters.com@reuters.net))