MILAN & NEW YORK--(BUSINESS WIRE)--SIA, a European high-tech leader in payment infrastructure and services, and First Data Corporation (NYSE: FDC), a global leader in commerce-enabling technology, have signed an agreement for SIA to acquire First Data’s card processing businesses in parts of Central and Southeastern Europe for €375 million. In 2017, these businesses generated a combined revenue of approximately €100 million for First Data.
This acquisition by SIA provides card processing, card production, call center and back-office services, including 13.3 million payment cards, 1.4 billion transactions, in addition to the management of POS terminals and ATMs. These businesses are primarily located in 7 countries: Greece, Croatia, Czech Republic, Hungary, Romania, Serbia and Slovakia.
As a result of the transaction, SIA will become a leading player in processing and services in the region. The agreement includes the transfer of about 1,400 First Data employees into SIA.
“This acquisition is in line with our strategy to become the leading European independent digital payments platform. SIA is further strengthening its position in the e-payments international market, increasing its market shares in e-money high-growth countries,” said Massimo Arrighetti, CEO of SIA.
“Thanks to the agreement with First Data, SIA Group continues on its path of international growth, confirming its leadership at European level in a sector like that of electronic payments undergoing continuous consolidation”, commented Nicola Cordone, Deputy CEO, Senior Vice President Global Business Solutions of SIA. “In particular, in Central and Southeastern Europe we will become the foremost technology provider in a market that in the coming three-year period will see a rise in payment transactions of over 11% per annum, nearly double the growth of Europe at 6%. With this acquisition, SIA’s revenues, on a 2017 pro-forma basis, will increase by around 18% with a significant surge in income from outside Italy, which will rise from 20% to 33% of the total”.
The deal is expected to close in the third quarter of 2018 and is subject to normal closing conditions.