Nexi and SIA are in talks about a merger: Bloomberg

Italian companies Nexi and SIA are discussing a potential combination that could create one of the biggest payment providers in Europe, people familiar with the matter told Bloomberg.

According to the sources, the two businesses have been discussing the possible deal on and off for more than a year.

Executives at Nexi and SIA have met in the past few weeks and have asked advisors to look into potential synergies, as well as to come up with a fair valuation for the latter, insiders noted, asking not to be identified as the situation is still private.

Deliberations are still in the early stages and therefore there is no guarantee of a deal taking place, Bloomberg observed.

Chief executive of Italian broker-dealer Marzoto SIM told the news provider by phone yesterday that a merger with SIA would be strategically positive for Nexi as it would allow the company to strengthen its business position.

It would generate important cost synergies by integrating the potential target’s processing services with the acquiring group.

Nexi claims to be a market leader in numerous industry segments across Italy, including issuing, merchant services, ATM management and corporate banking.

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Shares in the group rose 1.9 per cent to EUR 15.08 at 13:50 today, giving the company a market capitalisation of EUR 9.46 billion.

In the three months ended 31st March 2020, Nexi posted revenue of EUR 225.30 million, representing a slight decline from EUR 226.50 million in the corresponding period in 2019.

Earnings before interest, taxes, depreciation and amortisation increased 3.9 per cent to EUR 115.00 million in Q1 2020 (Q1 2019: EUR 110.60 million).

SIA provides its services in more than 50 countries and claims to be the European leader in the design, creation and management of technology infrastructures and services for financial services and banking companies.

Last year, according to its website, the business recorded turnover of EUR 733.20 million.

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