Bambora taken over by Ingenico

Bambora taken over by Ingenico

In payments, the big guys just keep getting bigger and more diversified. Paris-based Ingenico Group has announced its €1.5 billion ($1.74 billion) purchase of Stockholm-based payments company Bambora from Nordic Capital, writes Paybefore (Banking Technology‘s sister publication).

The transaction will be fully financed through available cash and debt and because the financial leverage will remain less than three times EBITDA, the company says it will have flexibility for future M&A.

Bambora employs more than 700 people across Europe, North America and Australia. The group provides in-store, mobile and online services through payment solutions for more than 110,000 merchants and enterprises globally, according to the announcement.

Specifically, Ingenico cited Bambora’s merchant acquiring platform, customer-centric approach and value-added services, such as fast digital onboarding and data analytics, as key to the deal. Bambora, whose model generates more than 90 percent recurring revenue, reached a gross revenue of €202 million ($235 million) in 2016, Ingenico says.

“The acquisition of Bambora represents a key milestone in our strategic plan providing a more integrated client offering and omnichannel solutions,” says Philippe Lazare, chairman and CEO of Ingenico. He adds the two companies have “a perfect complementarity”.

Bambara says its top management will reinvest a meaningful part of their proceeds in Ingenico shares and will be fully involved in the development of Bambora within Ingenico.

Closing is expected to occur by the end 2017, upon regulatory and other approvals.