Piraeus Bank, a subsidiary of Piraeus Financial Holdings SA, completed the process of spin-off of the card acceptance and transaction clearance services sector to a new company and its transfer to Euronet Worldwide Inc.
The two sides had proceeded from 16.03.2021 to the signing of a relevant binding agreement, under which Euronet Worldwide will henceforth provide card acceptance and settlement services to Piraeus Bank customers.
Under this agreement, Piraeus Bank and Euronet Worldwide are launching a new strategic long-term partnership, which includes the activity of card acceptance services, as well as the conclusion of long-term cooperation of sales and distribution of related services and products.
The total price of the Transaction amounted to € 300 million. The capital effect of the Transaction amounts to a benefit of approximately 100 basis points on the capital adequacy ratio of the Piraeus Financial Holdings Group, which as of December 31, 2021 amounted to 15.8%.
The parties will offer significant new value to existing and new customers in Greece, utilizing the technological capabilities and top know-how of an international payment provider such as Euronet Worldwide, ensuring innovation and leadership in the field of card acceptance services. Piraeus Bank and Euronet Worldwide have been cooperating in the card processing sector since the 2000s.
Referring to this new strategic partnership, the CEO of Piraeus Financial Holdings Mr. Christos Megalou stated: “Piraeus Bank continues to innovate, seeking to provide a high level of banking experience and service, strengthening the dynamism of the Greek banking market. Knowing that the European payment framework is changing rapidly, we are confident that Euronet Worldwide is the most appropriate long-term strategic partner of Piraeus Bank for the optimal service of our Bank customers in the new digital age and the joint promotion and technical support of new advanced products and services “.
Mr. Michael J. Brown, CEO of Euronet Worldwide, stated: “This new partnership of Piraeus Bank with Euronet starts today! “With Piraeus Bank, we further join forces and develop the digital payments sector, so that each of our customers can benefit from innovative products and services, enhanced customer experience, as well as access to international networks and the technological infrastructure of Euronet Worldwide.”
UBS AG London Branch acted as the exclusive financial advisor of Piraeus Bank in the Transaction. PricewaterhouseCoopers Business Solutions SA acted as technical consultant for Piraeus Bank. Akin Gump Strauss Hauer & Feld LLP and the law firm Lambadarios respectively acted as international and domestic legal advisors to Piraeus Bank.