Italian payment processor Nexi is in exclusive talks on a merger with Nordic counterpart Next, creating an at-scale pan-European powerhouse.
The deal, which is expected to be worth £10 billion, will give Nexi a hold on payments processing in the Nordics, while extending its influence to central and eastern Europe.
The move follows an agreement reached last month on a takeover by Nexi of Italian compatriot SIA, emphasising the ongoing consolidation in the European payments industry.
A combination with Nets would create a leading European player in the digital payments landscape, serving as a “one-stop-shop” to a wide range of customers.
Over the past three years, under Hellman & Friedman’s ownership, Nets has undergone significant transformation and investments resulting in accelerated growth of its core business, both organically and through strategic M&A, including Concardis Payment Group, Dotpay/eCard, P24 and PeP.
Following the sale of Nets’ account-to-account business to Mastercard, which will complete prior to closing of the merger with Nexi, Nets is focused on merchant services, with a strong e-commerce exposure and proposition, and on issuing processing and innovative digital payments methods.
In 2019 Nets generated revenues of €1 billion and adjusted EBITDA of €0.4 billion, and has a growth profile over the medium term broadly in line with the one of Nexi.