-French company Worldline to sell TSS unit to Apollo in possible $2.6 bln deal (updated)

TSS

21/02/2022 08:28

(Adds share price and analyst comment)
    * Worldline shares rise
    * Deal expected to close in H2 2022
    * Deal worth potentially 2.3 bln euros
    * Worldline: TSS sale will help cut debt
    * UBS and BNP Paribas advising Worldline
    * HSBC, Barclays, SocGen advising Apollo

    By Sudip Kar-Gupta
    PARIS, Feb 21 (Reuters) - French payments company Worldline
 WLN.PA  has entered exclusive talks to sell its TSS terminals
business to U.S. firm Apollo Funds  APO.N  in a deal potentially
worth around 2.3 billion euros ($2.6 billion), lifting
Worldline's shares.
    Analysts welcomed the sale, which investment bank JP Morgan
said represented a higher-than-expected value for TSS.
    The deal would comprise a 1.7 billion euros upfront
consideration as well as preferred shares that could reach up to
0.9 billion euros in value depending on how TSS does in future.
    Worldline's shares rose 3.5% in early trading. 
    The financial technology and payments sectors have witnessed
several big takeover deals in recent years as the growing use of
smartphones for online payments has sparked competition to
develop new systems, often requiring large investments.
    Worldline, which bought French rival Ingenico in 2020 in a
7.8 billion euros deal, said the sale of TSS to Apollo would
help cut its debt and simplify its corporate structure.
    ($1 = 0.8789 euros)

 (Reporting by Sudip Kar-Gupta; Editing by Emelia
Sithole-Matarise)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))