Trigon advised MCI Capital, the leading technology-focused private equity group in Central and Eastern Europe, on their sale of Polish online payment service providers Dotpay/eCard, to Nets, the leading provider of digital payment solutions in Europe, at an enterprise value of PLN 315 million.
Andrzej Budzik will continue as CEO of Dotpay/eCard and report directly to Asger Hattel, Head of Merchant Services in Nets, and the brands of Dotpay and eCard will remain.With this acquisition Nets gains access to the sixth largest country in EU by inhabitants with a growing economy, solid growth in eCommerce volumes and high growth potential through cash to digital payments conversion, well supported by governmental cashless initiatives.
Trigon acted as sole financial advisor to MCI Capital, with Deloitte Legal acting as legal advisor. Nets was advised by CET Polska and White&Case.
The acquisition remains subject to approval by the relevant Polish authorities. Closing is expected to be in Q4/2018.
Bo Nilsson, CEO of Nets, commented
"With this acquisition we extend our geographic presence in Europe, especially within the high growth merchant services area as we now get better access to pursuing opportunities in Poland. Dotpay/eCard have performed very strongly in recent years achieving solid volume and revenue growth. We aim to continue and strengthen this development through both investments into organic growth and potentially also via further consolidation."
Andrzej Budzik, CEO of Dotpay/eCard, said
"With our offerings in the eCommerce area we will further strengthen our combined portfolio within merchant services, and, as part of the Nets Group, we will be able to speed up innovation building on our joint capabilities to the benefit of merchants and consumers."
Nets and Dotpay/eCard have a highly complementary strategic fit. With a comprehensive product suite, primarily within eCommerce, Dotpay/eCard complement Nets very well, and both Nets and Dotpay/eCard will benefit from increased industrial scale and synergies through joint innovation, for instance. Dotpay/eCard employ about 100 people and the expected gross revenues for 2018 are EUR 19 million.
Łukasz Wierdak, Investment Partner of MCI Capital, added
"I would like to thank the management and all the employees for their cooperation and the strong development of Dotpay/eCard. Another chapter is opening up and judging by the dynamics in the industry, it will certainly be an interesting time characterised by further growth. From MCI's perspective, we have achieved a great success confirming our expertise within the area of the digital economy and fintech, and equally importantly, we are passing Dotpay/eCard into very good hands."
About MCI Capital
MCI Capital, founded in 1999 in Warsaw, Poland, is one of the most dynamic private equity groups in Emerging Europe focused on digital transformation. Currently, with the use of Private Equity / Venture Capital funds, MCI implements growth stage and expansion/buy-out stage investments in CEE Region, Germany and Austria (DACH). MCI Capital is also active in the field of private debt. The assets under management of around EUR 540 million are dedicated to fintech, e-commerce and IT infrastructure. Latest significant milestones included exit from iZettle to Paypal, sale of CEE e-travel champion Invia, and purchase of insurtech leader in Hungary – Netrisk.
Nets is a leading provider of digital payment solutions and currently is one of the most dynamic consolidators in the European payment landscape. Nets itself has recently been taken private by US buyout fund Hellman & Friedman in a USD 5.3bn takeover from Advent and Bain, who retained minority stakes in the group. Advent and Bain have furthermore merged their DACH asset, Concardis Payment Group, into Nets Group a month ago. The group generates over EUR 1.3 billion in net revenues and EUR 500 million in EBITDA.
Dotpay and eCard are both Polish payment institutions jointly forming a leading one-stop shop for e-payment solutions in Poland by combining the capabilities of a licensed card acquirer and a payment service provider which offer merchants comprehensive, omni-channel payment solutions tailored to the most demanding business processes.