Ingenico Buys Bambora for €1.5 Billion
In payments, the big guys just keep getting bigger and more diversified. Paris-based Ingenico Group on July 20 announced its €1.5 billion (US$1.74 billion) purchase of Stockholm-based payments company Bambora from Nordic Capital.
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 an 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 (US$235 million) in 2016, Ingenico said.
“The acquisition of Bambora represents a key milestone in our strategic plan providing a more integrated client offering and omnichannel solutions,” said Philippe Lazare, chairman and CEO of Ingenico Group. “Coupled with the investments made in our platforms and the development of new technological features, Bambora will enhance our customer-centric approach and will reinforce our online and in-store positioning through a perfect complementarity.”
Bambora’s 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, the company said.
Closing is expected to occur by the end 2017, upon regulatory and other approvals.