US banking giant, Mastercard is on its way to make its biggest acquisition ever by buying a majority share in Denmark-based payment provider Nets Group in a €2.85 Bn deal. The acquisition will include Nets’ corporate services business, more precisely its clearing and instant payment services, and e-billing solutions. Due to regulatory approvals and customary closing conditions, the deal is expected to be closed in the first half of 2020.
Mastercard is the leading global payments & technology company based in the US. Company’s principal business is to process payments between merchant banks and card-issuing banks or credit unions which use the Mastercard brand debit, credit and prepaid cards to make purchases. With the acquisition of Nets’ corporate services business, Mastercard will extend its Send and Transfast technologies which deliver faster international cross-border money transfers to bank accounts, mobile wallets, and cards.
Commenting on the acquisition, Michael Miebach, Chief Product & Innovation Officer of Mastercard stated: “This deal strengthens our unique position as the one-stop partner for any bank, merchant or government’s payment needs. The combination with existing Mastercard assets such as Vocalink, Transfast, and Transactis delivers real-time payment capabilities, innovation, and expertise that are truly differentiated.”
Nets Group is a Denmark-based provider of digital payment services and related technology solutions across Europe. The Company offers card payment, invoice handling, credit transfer transactions, and merchant services. Nets has offices in 20 countries in Europe and 4,100 employees. The acquisition of Mastercard is part of Nets’ European strategy to focus on its strong and scalable businesses within its merchant and processing services.
Commenting on the deal, Group CEO of Nets, Bo Nilsson stated: “The transaction increases our flexibility to play an active role in our sector’s consolidation. It also allows us to expand our leading position as a one-stop payment shop for merchants and a strong provider of processing services for banks across Europe.”