Eurobank, one among Greece’s 4 largest lenders, mentioned on Tuesday it entered right into a binding settlement to promote 80% of its service provider buying enterprise to French payments firm Worldline in an try to strengthen its capital base.
Eurobank is the third Greek financial institution to dump its funds infrastructure involving point-of-sale (POS) terminals, after Piraeus Financial institution and Alpha Financial institution concluded comparable offers this yr.
As a part of the deal, Worldline will purpose to leverage the Greek lender’s banking community as a industrial channel to distribute its fee services and products to bodily and online merchants.
Eurobank’s service provider buying unit is a number one acquirer within the native market with 21% share of transaction volumes processed in Greece. The division manages funds for 123,000 bodily and on-line retailers with greater than 7 billion euros ($7.91 billion) of transactions.
“The settlement with Worldline relating to the playing cards buying enterprise is totally in step with our strategic plan to give attention to our core actions, whereas additional strengthening our capital base,” Eurobank Chief Government Officer Fokion Karavias mentioned in a press release.
The lender mentioned the deal values its service provider buying unit at 320 million euros, topic to customary changes as of the date of completion of the deal.
The settlement additionally entails an extra, conditional fee, referral charges and customary minority safety rights, Eurobank mentioned.
The sale is predicted to shut by the second quarter of subsequent yr and contribute about 80 bps to Eurobank’s group core fairness Tier I ratio.
Barclays Financial institution was the only monetary adviser to Eurobank with Bain & Firm Italy being its enterprise adviser.
Aside from Worldline, Eurobank had additionally been in talks with Italy’s Nexi to promote its service provider buying enterprise.
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