French payments processor Worldline has entered exclusive talks over selling its digital services business to tech group Magellan Partners in a €410 million deal.
Worldline says it is considering divesting some assets as part of a "strategic refocus". In June, the firm's share price cratered after multiple media outlets alleged that it had covered up client fraud to protect revenue.
The carve-out would cover the Mobility & e-Transactional Services (MeTS) business line as well as some digital banking operations that mostly operate outside of the core payments work. This so called MeTS Perimeter accounted for about €450 million in turnover in 2024 and includes 3800 employees, mainly located in France, UK, Spain, Germany, Austria, Belgium and India.
Magellan Partners has made a binding offer with an upfront enterprise value of €400 million plus an additional contingent consideration of €10 million based on the 2025 operating performance.
Worldline says a deal would help it simplify operations and focus on core payment activities for merchants and financial institutions.
Pierre-Antoine Vacheron, CEO, Worldline, says: “We are embarking on a pivotal transformative chapter for Worldline that goes through increased focus on our core activities. The contemplated transaction is a first step in this journey and affirms our strategic confidence in our payments expertise while empowering MeTS to accelerate its digital transformation as an independent leader."
The sell off comes as Worldline recorded a first half €4.1 billion hit on its merchant business and a wholesale overhaul of its management team.