The completion of the strategic agreement of Alpha Bank and NEXI for their cooperation in the field of card acceptance and transaction settlement of the systemic group in Greece is entering the final stretch.
The two sides had signed a memorandum of cooperation in August 2021 and now after the binding offer they signed, the completion of the deal is very close.
The transaction provides for the severing and transfer (“carve out”) of the activity of the Card Acceptance and Transaction Clearing Sector from Alpha Bank to a newly established company, the sale to Nexi of 51% of the new company and the conclusion by the parties of a long-term distribution contract.
The agreed business value of the transaction was set at € 307 million for 100% of the POS sector. In addition, an additional price of up to 60 million euros was agreed in the form of earnings (pay-outs) payable up to the fourth year of operation of the new company.
The latter will contribute more than 150,000 POS terminals, with a volume of 9 billion euros and is expected to generate approximately 93 million and 18 million euros in revenue and EBITDA, respectively, in 2022, on a pro-forma basis.
The agreement with Nexi will also bring further cost reductions, sending another message to the markets for the consistent implementation of the bank’s plan to improve profitability indicators, according to sources from Alpha Bank.
At the same time, all the necessary actions for the creation of the new company have been planned and are being implemented.
In a very short period of time, the entire contractual framework of the agreement was completed, while the new organizational structure, the initial staffing of the company as well as the business plan are being prepared.
In the following days, an application for a license as a Payment Institution will be submitted to the Bank of Greece, while the negotiations with the Card Schemes have begun.
Utilizing the experience and know-how of the largest payment provider in Europe, the goal is the immediate upgrade of payment systems, in order to offer new reliable and innovative omnichannel solutions, with smart terminals connected to the merchant’s cash register and advanced analytics services for all companies cooperating with the Bank.
Alpha Bank notes that Alpha Bank’s card acceptance sector holds the first place in the Greek market and is the only one that provides acceptance for all card programs.
In addition, the same sources point out, “it utilizes a diversified portfolio of top-level traders active in the highly lucrative tourism and hospitality sectors and is therefore in the best position to benefit from the strong recovery in travel volume following the Covid-19 pandemic.”