Ingenico to Buy Ogone for $484 Million in E-Payment Push
Acquiring closely held Ogone, which makes software for electronic transactions over the Internet, will boost profit from 2014, Paris-based Ingenico said today in an e-mailed statement. Savings will add 20 million euros in earnings before interest, taxes, depreciation and amortization in 2015, it said.
“We’ll look to make a push outside Europe,” Chief Executive Officer Philippe Lazare said on a conference call. “This year will be dedicated to integrating Ogone. Once that’s done, we’ll ask ourselves what geographies we can expand our business to.”
The deal will add Ogone’s operations in countries including India, Germany and the U.S. Customers of the company, which focuses on facilitating Web transactions and preventing fraud, include Kraft Foods Group Inc. (KRFT), Ikea and Japan Airlines Co., according to the company’s website.
Ingenico shares rose as much as 2.2 percent to 46.93 euros and advanced 1.2 percent at 9:27 a.m. in Paris. The stock jumped 47 percent in the 12 months through yesterday, giving the company a market value of 2.4 billion euros.
Ingenico, which competes with VeriFone Systems Inc. (PAY), said it plans to finance the deal using 120 million euros in cash and 240 million euros in loans.
Ogone, based in Brussels and owned by investment fund Summit Partners LP, had revenue of 42 million euros last year and an Ebitda margin of 30 percent, Ingenico said.