Ingenico Group (ING), a French maker of payment terminals, said it’s in exclusive talks to acquire online payment-service provider GlobalCollect for 820 million euros ($1.12 billion) to help it expand globally.
Ingenico shares jumped the most in more than a decade. The purchase of Amsterdam-based GlobalCollect would be funded by available cash and debt, Ingenico said in a statement late yesterday. GlobalCollect offers merchants a hub to other payment providers in 170 countries, according to the statement.
“The acquisition of GlobalCollect would enable us to accelerate the implementation of our strategy across all channels, on a global scale, especially in payment services and mobile payment,” Ingenico Chief Executive Officer Philippe Lazare said in the statement.
The global money-transfer and payments market is divvied up by operators from EBay Inc.’s PayPal unit to Gemalto NV, which sells software to make transactions more secure. Ingenico competes directly with companies including France’s Worldline SA, an Atos unit that sold shares in an initial public offering last month and is also seeking to bulk up through acquisitions. Other rivals include Nets, Vantiv Inc. and Global Payments Inc.
Ingenico shares rose as much as 13 percent, the biggest advance since February 2003. The stock was up 8.4 percent at 70.78 euros as of 9:24 a.m. in Paris, taking the advance to 21 percent this year.
GlobalCollect reported 2013 gross revenue of 305 million euros and adjusted earnings before interest, taxes, depreciation and amortization of 50 million euros. It gets 65 percent of its sales from outside Europe. The acquisition will strengthen Ingenico’s payment-processing business and bolster its position in territories including North America.
The deal, which needs antitrust approval, is expected to be completed in the fourth quarter, Ingenico said.
“The acquisition of GlobalCollect is a significant move to further expand the recurring services business,” Sebastien Sztabowicz, an analyst at Kepler Cheuvreux, said in a note. “We believe there are cross-selling opportunities.”
Ingenico had sales of 1.37 billion euros last year and forecast 2016 revenue of more than 1.8 billion euros with an Ebitda margin of more than 20 percent. It will increase that revenue target on a pro forma basis to more than 2.2 billion euros after the acquisition, Ingenico said.
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