REG-TCS Group Holding PLC TCS Group Holding PLC: TCS Group Holding PLC acquires a majority stake in CloudPayments <Origin Href="QuoteRef">TCSq.L</Origin>

TCS HoldingAnnouncement

12/10/2017 18:11

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   TCS Group Holding PLC (TCS)
   TCS Group Holding PLC: TCS Group Holding PLC acquires a majority stake in
   CloudPayments

   12-Oct-2017 / 19:06 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   TCS Group Holding PLC acquires a majority stake in CloudPayments

    

   Moscow, Russia - 12 October 2017. TCS Group Holding PLC (TCSGH), Russia's
   leading provider of online retail financial services via its Tinkoff.ru
   financial supermarket, is pleased to announce the purchase of a
   55% controlling stake in CloudPayments, an innovative developer of online
   payment solutions. The signing ceremony took place today and we warmly
   welcome our new colleagues in CloudPayments into Tinkoff Group.

    

   The remaining 45% stake will continue to be owned by CloudPayments'
   founders and employees, who are firmly committed to the company and will
   remain to develop the business into the future. TCSGH has the right to
   acquire the remaining 45% within two years.

    

   The core business of CloudPayments is online merchant acquiring in Russia.
   However, this transaction also includes all CloudPayments group companies,
   i.e. its operations in Kazakhstan and Latvia, as well as the online cash
   register solution for online stores, CloudKassir. 

    

   CloudPayments will continue to be led by its co-founders, Dmitry
   Spiridonov and Konstantin Yan, with all employees remaining with the
   business. Selected Tinkoff Bank managers will join CloudPayments'
   executive board in order to strengthen its team. It is not envisaged that
   this transaction will entail any changes for CloudPayments' existing
   customers or partners.

    

   Together with Tinkoff Group, CloudPayments will further develop its
   leading technology and servicing platforms whilst leveraging Tinkoff's
   wider suite of services, technologies and resources to drive growth. The
   deal will enable Tinkoff Group to enhance its merchant acquiring business
   line as part of its growing SME offering.  

    

   Oleg Tinkov, the founder of Tinkoff Group, said: "We closely monitor the
   market and are always willing to invest in up-and-coming businesses. We
   are pleased to acquire this controlling stake in one of the leading
   players in the Russian online payments market. CloudPayments is developing
   at a fast pace, and they have managed to secure a market niche in just
   three years. We are now joining efforts and resources with one of the most
   talented teams in the market. This will enable us to further increase our
   market share in the online payments segment whilst significantly improving
   our services for SME customers."

    

   Oliver Hughes, CEO of Tinkoff Bank, commented: "This acquisition is in
   line with our strategy to enhance our merchant acquiring services as part
   of our expanding SME platform and will allow us to increase our presence
   in the online merchant acquiring market. We are pleased to now be working
   together with the CloudPayments team and will provide all the necessary
   resources and technology to expand the business further for the combined
   benefit of our customers and partners."

    

   Dmitry Spiridonov, co-founder of CloudPayments, said: "We are delighted to
   become part of Tinkoff Group, the market's most tech-savvy player. I
   believe that the upgrade of payment services and the implementation of
   innovative technologies that support business diversification are the key
   technological and market trends now. Together with Tinkoff Bank, we will
   be able to accelerate our infrastructure upgrade process and,
   consequently, boost our flexibility in leveraging the variety of global
   payment technologies emerging today."

    

   For enquiries:
   Tinkoff Bank

    Darya Ermolina
   Head of PR

    + 7 495 648-10-00 (ext. 2009)

     1 d.ermolina@tinkoff.ru

                                       

   Rufiya Arslanova
   PR Manager

   + 7 495 648-10-00 (ext. 2811)

    2 r.arslanova@tinkoff.ru

    
      FTI Consulting London

      Elena Kalinskaya/Leonid Fink

      +44 (0) 020 3727 1000            

       

       
                                       

   About the Group

   TCS Group Holding PLC is an innovative provider of online retail financial
   services operating in Russia through a high-tech branchless platform. TCS
   Group includes Tinkoff Bank, mobile virtual operator network Tinkoff
   Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of
   development hubs across Russia.

   The Group was founded in 2006 by the Russian entrepreneur Oleg Tinkov and
   has been listed on the London Stock Exchange since October 2013.

   With no retail branches, the Group serves its customers remotely via
   online channels and its call centre, and operates a network of over 1,800
   representatives to ensure smooth delivery of its products. The network
   covers all of Russia and allows next day delivery to most customers.

   The Group's key business is Tinkoff Bank, Russia's first and only direct
   bank offering both own brand and partner retail financial services via its
   Tinkoff.ru platform. The product range includes daily banking (credit and
   debit cards, payments, money transfers), savings, investments, loyalty
   programmes, travel services, SME services, mortgage platform, and
   insurance. With its special focus on mobile business, the bank offers
   mobile applications both for its customer base (Mobile Bank) and beyond it
   (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

   As at 1 August 2017, the bank was the second largest player in the Russian
   credit card market, with a market share of 11.5%. The 1H 2017 IFRS net
   income of TCS Group Holding PLC amounted to RUB 7.6 bn, ROE stood at 46%.

   Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the
   Bank of the Year 2016. In October 2016 Tinkoff Bank was named the largest
   independent global direct bank by Frost & Sullivan. In 2015 and 2016, the
   Global Finance magazine named Tinkoff Bank as the Best Consumer Digital
   Bank in Russia. In 2016, the bank also won Global Finance's Best
   Integrated Consumer Bank Site award and was named the Best Digital Bank in
   the CEE by Euromoney. The bank's mobile application was recognised as the
   best in Russia by Markswebb Rank & Report for three consecutive years in
   2014, 2015 and 2016, and by Deloitte for four consecutive years from 2013
   to 2016.

    

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   ISIN:          US87238U2033
   Category Code: MSCM
   TIDM:          TCS
   LEI Code:      549300XQRN9MR54V1W18
   Sequence No.:  4735


    
   End of Announcement EQS News Service

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   618657  12-Oct-2017 

    3 fncls.ssp?fn=show_t_gif&application_id=618657&application_name=news&site_id=reuters8

References

   Visible links
   1. mailto:d.ermolina@tinkoff.ru
   2. mailto:r.arslanova@tinkoff.ru


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