SIA and Nexi merge, creating Europe’s largest paytech

Italian payment firm Nexi, and Italian investment firm, SIA, have merged catapulting the joint company into the nation’s top 10 publicly traded businesses with annual revenue of 1.8 billion euros ($US 2 billion), a market value of more than 15 billion euros ($US 17 billion) and over a 70% market share in Italy.

The two companies have been in merger talks for 18 months, resolving differences over governance and valuation until an agreement was recently reached, according to a report in Bloomberg.

The all-share merger, which is expected to close by the summer of 2021, values SIA, which is controlled by Italian state investment agency Cassa Depositi e Prestiti, at 4.6 billion euros, ($ US 3.4 billion) roughly half the market value of Nexi.

The combined company will be the largest in continental Europe, handling payments for roughly 2 million merchants, managing 120 million cards and processing more than 21 billion transactions a year with a workforce of over 5 thousand individuals in 15 countries.

The Nexi-SIA deal joins other company consolidations in the payments industry. France’s payment company, Worldline’s WLN.PA, acquired Ingenico for 7.8-billion euros, ($US 9.1 billion) creating the world’s fourth-biggest payments firm.

Nexi current CEO, Paolo Bertoluzzo, will become CEO and general manager of the new entity.

“This transaction will create a large Italian PayTech company leader in Europe, a great technological and digital excellence with scale and capabilities to play an increasingly leading role in Italy and at an international level in a market, like the European one, that sees strong consolidation trends,” Bertoluzzo said in a statement.

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