(Alliance News) - Credito Emiliano Spa and Worldline SA announced Wednesday that they have signed a long-term strategic partnership agreement to enhance the business related to merchant contracts for digital payments and POS management.

The agreement involves the transfer of all of Credem's merchant acquiring activities for EUR95 million -- with a price adjustment mechanism over the next few years and based on specific targets -- and the signing of a long-term commercial agreement, for up to 15 years, for the distribution of Worldline's products and services through Credem's network.

The collaboration will cover the management of the acquiring business of more than 25,000 merchants with about 32,000 POSs, which, in 2023, generated transactions of about EUR3 billion.

Completion of the deal is subject to obtaining the necessary approvals from the relevant authorities, including Bank of Italy authorization, and closing is expected in 2025 with a net outlay by Worldline of about EUR75 million as WLMSI's other shareholder will contribute about EUR20 million.

"The payments sector is taking on an increasingly central role for merchants," said Angelo Campani, Credem's general manager, "and being able to offer our customers up-to-date and cutting-edge solutions in this area is key to continuing to create value and guarantee a level of service of excellence.

"This agreement with one of the most solid Italian and European banking groups represents a further consolidation of our market presence, allowing us to position ourselves as the second player in Italy. Our focus is to guarantee a service of excellence that enables the bank's corporate clients to equip themselves with cutting-edge payment technologies resulting in increased collections," said Stefano Calderano, managing director of Worldline Merchant Services Italia.

Credem's ttiol closed Wednesday up 1.2 percent at EUR10.58 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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