US payment processor EVO Payments is to acquire a 66% stake in PKO Bank Polski's merchant acquiring business, eServices, for a minimum $113.5 million.
At present eService, with over 35% of market share in terms of transaction count and volume, is the leading Polish merchant acquirer. The eService acceptance network consists of more than 80,000 POS terminals and represents the largest network of terminals supporting contactless payments in Poland. The company also performs a key role in the development of PKO Polski's mobile banking service, IKO.
Under the terms of the transaction, PKO will receive $113.5 million for its stake, plus an additional earn-out based on future performance. In addition, the parties will establish a 20-year alliance, working together to grow the eService footprint in Europe.
Zbigniew Jagiello, CEO of PKO Bank Polski, says "The company has achieved a leading position in the Polish market, is highly profitable and well positioned to expand internationally. Now, with a prominent and one of the most dynamically developing payments service providers in the world, we can mutually focus on further developing eService as a leading merchant acquirer in Poland, while expanding throughout Central and Eastern Europe."
In the first half of 2013 eService posted a net profit of PLN19.3 million. According to The Nilson Report, eService ranks in the top 30 of the largest European merchant acquirers.
The deal is subject to regulatory approvals and is expected to be completed by the end of 2013.