TPG Offers €1bn for Nexi’s Digital Banking Solutions Division
In a recent development, the U.S.-based alternative asset manager, TPG, has put forth a binding offer of approximately €1bn ($1.16bn) for the digital banking solutions division of Nexi. Nexi, a renowned Italian payments technology (PayTech) company, has been in negotiations with TPG for several months, as reported by Bloomberg.
Nexi’s Response to TPG’s Offer
Nexi’s board received notification about the proposal earlier in the week. The company has until mid-December to decide whether to proceed with the transaction. Nexi acknowledged the receipt of an offer from TPG concerning certain assets within its digital banking solutions unit. In a statement, Nexi clarified that it had received from TPG an offer subject to various conditions for the acquisition of certain assets belonging to the Digital Banking Solutions business unit. The board has reserved its right to make any assessment.
Previous Discussions and Offers
This offer from TPG follows earlier discussions between Nexi and TPG that commenced with a preliminary bid of around €800m ($925m) in March. Last year, Nexi also explored a potential €800m deal with the Italian investment fund F2i, which, however, did not materialise. Negotiations with TPG slowed down in recent months due to resistance from some shareholders and concerns about the business unit’s strategic importance.
Nexi’s Market Performance and Recent Collaborations
Nexi, headquartered in Milan and listed on Euronext Milan, has grown through multiple acquisitions, including the 2020 purchase of the Nordic payments company Nets. The payments sector is experiencing increased pressure on profit margins, with Nexi’s market value declining by around 75% over the past four years, as per reports.
Recently, Nexi partnered with Visa and Mastercard to integrate their money transfer platforms, Visa Direct and Mastercard Move, into its business services. This strategic move aims to help Italian businesses transfer funds directly to customer payment cards, making Nexi the first provider in Italy to offer these services.
These collaborations reflect Nexi’s commitment to innovation and customer-centric solutions in the digital banking sector, and the potential acquisition by TPG could further bolster its capacity to deliver quality digital banking solutions.
For more detailed insights, click Here.
