ATHENS (Reuters) -Greece’s Alpha Bank said on Tuesday it has agreed with Italy’s Nexi to team up in the payments acceptance business in Greece.
Under the agreement, Alpha will spin off its merchants acquiring business unit into a new entity in which Nexi will acquire 51% for 157 million euros ($186.28 million) in cash.
The agreement is contingent on the new company achieving certain financial targets within its first four years.
“The partnership with Nexi is another major step in Alpha Bank’s ambition to form strategic alliances with the best global partners to provide solutions of the highest quality to our customers,” Alpha’s CEO Vassilis Psaltis said.
The transaction is expected to close in the first quarter of 2022, subject to all applicable corporate and regulatory approvals.
After the deal’s finalization, Nexi said it would consolidate the new company, which is expected to generate 93 million euros in revenues and 18 million euros in core profit in 2022.
Deutsche Bank advised Alpha Bank, whose parent company is Alpha Services and Holdings SA. HSBC, Mediobanca, Banca di Credito Finanziario and AXIA Ventures advising Nexi.
Nexi is a leading pay tech company in Italy, connecting banks, merchants and consumers in digital payments.
Reporting by George Georgiopoulos; Additional reporting by Elisa Anzolin in Milan; Editing by Lisa Shumaker
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