TPG makes $1.16bn bid for Nexi’s digital banking solutions unit

TPG has submitted a binding offer of approximately €1bn ($1.16bn) for the digital banking solutions division of Italian payments technology (PayTech) company Nexi.

The US-based alternative asset manager’s bid comes after several months of negotiations, reported Bloomberg, citing sources.

Nexi’s board was notified about the proposal earlier in the week, and the company has until mid-December to determine whether to proceed with the transaction.

The PayTech company confirmed it had received an offer from TPG concerning certain assets within its digital banking solutions unit.

Nexi, in a statement, said: “With reference to today’s media reports, the Company clarifies that it has received from TPG an offer subject to several conditions for the acquisition of certain assets belonging to the Digital Banking Solutions business unit.

“The Board has reserved its right to make any assessment.”

This offer follows earlier discussions between Nexi and TPG, which began with a preliminary bid of around €800m ($925m) in March this year.

Last year, Nexi also explored a potential €800m deal with Italian investment fund F2i, which did not materialise.

Negotiations with TPG slowed in recent months due to resistance from some shareholders and concerns about the business unit’s strategic importance.

Nexi, based in Milan and listed on Euronext Milan, has expanded through a series of acquisitions, including the 2020 purchase of Nordic payments company Nets.

The payments sector faces increased pressure on profit margins, with Nexi’s market value declining by around 75% over the past four years, the report said.

Recently, Nexi teamed up with Visa and Mastercard to integrate their money transfer platforms, Visa Direct and Mastercard Move, into its business services.

This move aims to help Italian businesses transfer funds directly to customer payment cards, making Nexi the first provider in Italy to offer these services.

"TPG makes $1.16bn bid for Nexi’s digital banking solutions unit " was originally created and published by Retail Banker International, a GlobalData owned brand.

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