Nexi SpA and Greece’s Alpha Services & Holdings SA have signed a memorandum of understanding to be finalized in the coming months through a commercial agreement, paving the way for the Italian payments company to expand in the fast-growing Greek payments market.
Nexi said late Tuesday that Alpha Bank SA, part of Alpha Services & Holdings, would spin off its merchant-acquiring business unit, with Nexi acquiring a 51% stake in the new company to tap Alpha Bank’s network in Greece.
The Italian company will buy the stake for a cash consideration of 157 million euros ($186.3 million) based on an enterprise value of EUR307 million.
Alpha Bank will receive referral fees from the new company in exchange for access to its network.
The announcement comes just about two months after French Fintech company Worldline agreed to buy most of Greek network-services provider Cardlink to expand in the Greek market, where card transactions are less common than in other European countries.
“This agreement, in line with our selective investment strategy in markets with high-growth potential, represents a further step towards our path of creating value in a highly competitive and rapidly consolidating market,” Nexi Chief Executive Paolo Bertoluzzo said.
The transaction should close in the first quarter of next year.
TSG has a pulse on the global payments landscape.
Interested in learning about Australia? Click here to download our Payments in Australia eReport for free!
Want payments insights from across the globe?
Check out our most recent article “Exploring Disparities Across the International Payments Landscape” which reveals insights from TSG’s ongoing Country Series, a growing collection of eReports that analyze the payments landscape of various countries across the globe.
Gain access to this exclusive collection and more through TSG’s eReports subscription.