Nexi S.p.A. (BIT:NEXI) agreed to acquire 80% stake in PayComet S.L from Banco de Sabadell, S.A. (BME:SAB) for €280 million on February 27, 2023. €280 million paid as upfront cash consideration reflecting an Enterprise Value of €350 million for 100%. Following completion of the transaction, Nexi will acquire over 380k merchants and approximately €48 billion of transaction volumes as of December 2022.

The merchant acquiring business is expected to generate an EBITDA of around €30 million based on 2023 figures, resulting in an implied EV/EBITDA 2023E of ~11.5x. This transaction, which takes place in the context of an increasingly competitive European market, is consistent with the strategic vision of Nexi and will contribute to the strengthening of its presence in Europe, further expanding its merchant acquiring operations, while increasing revenue diversification. As a result of the transaction, Sabadell customers will be able to benefit from the technological solutions and the innovative services developed by Nexi, leveraging its distinctive acquiring capabilities to manage digital payments acceptance.

Banco Sabadell will retain 20% stake for at least three years. Following this period, Banco Sabadell will have the option to sell that 20%. The transaction is subject to obtaining all applicable corporate and regulatory approvals and consents.

The acquisition is expected to close in fourth quarter of 2023. For Nexi, Jefferies and Rothschild & Co are acting as financial advisors, while BCG, KPMG and Allen & Overy are acting as industrial, due diligence and legal advisor respectively. Linklaters, S.L.P. acted as legal advisor to Banco de Sabadell.

Barclays PLC acted as financial advisor to Banco de Sabadell, S.A.