Sabadell in talks with Worldline, Nexi and Fiserv about sourcing for payment deals

Sabadell in talks with Worldline, Nexi and Fiserv about sourcing for payment deals

By Pamela Barbaglia, Jesus Aguado and Andres Gonzalez

LONDON/MADRID (Reuters) – Spain’s Sabadell Bank has received indicative bids from France’s Worldline, Italy’s Nexi (BIT) and US firm Fiserv (NASDAQ) for its payments division, in a deal worth up to 400 million euros ($393.64 million). ), three sources said.

The sources, who spoke on condition of anonymity, said Sabadell received the non-binding offers last week and is expected to select a group of final bidders in early October.

The sources said the Spanish bank will review the bids at a board meeting in late September and then move to the final stages of the auction, allowing bidders to conduct due diligence on the unit.

Sabadell, Worldline, Nexi and Fiserv declined to comment.

Sale processed by Barclays (LON πŸ™‚ has only addressed industry players, including US giant PayPal (NASDAQ:) and rival firms Fidelity National Information Services Inc (FIS) and Network International, while private equity funds have not been invited to bid, two sources said.

PayPal, FIS and Network International could not immediately be reached for comment.

In Spain, Sabadell has a strong presence on the payments front and accounts for approximately 16.3% of all revenue generated at Point of Sale (POS).

One of the sources said the payments arm, which focuses mainly on consumer lending, has a core profit of 25-30 million euros.

The business recorded sales of 21.6 billion euros in the first half of 2022 compared to 15.4 billion euros in the same period last year and is a stable and profitable source of income for the bank as payments transactions tend to carry higher interest than mortgages.

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The sale is expected to be completed in December and will result in the winner entering into a long-term partnership with Sabadell, which will retain the exclusive right to commercialize loans or financial transactions.

(1 dollar = 1.0162 euros)

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