* MRL Posnet has entered into definitive agreements to be acquired by Worldline SA, India’s leading payment services company today.
* The transaction values MRL at up to € 89 million – and provides a significant extension of geographical and functional reach for Worldline Group.
* 90%+ of incremental cashless payments post demonetisation occurred through POS and with this acquisition, Worldline aims to provide enhanced solutions to the growing digital payments market in India.
* Leadership team of MRL shall continue in their existing roles to facilitate transitioning and integration with Worldline.
October 03, 2017, Mumbai: Worldline [Euronext: WLN], the European leader in the payments and transactional services industry, today announces that it has entered into a definitive agreement in India to acquire 100 percent share capital of one of the fastest growing payment platforms – MRL Posnet, a full stack, tech-led, integrated merchant acquiring solutions provider.
Founded in 2008 and headquartered in Chennai, India, MRL Posnet has 100,000 payment terminals and processes c.€ 1.13 billion worth of transactions annualized. MRL has partnered with 18 banks for Merchant Services offerings through flexible modular architecture that can easily be customized to client-specific requirements. Today, through this acquisition by Worldline, the two entities can offer payment acceptance and optimization solutions for leading banks and enterprise brands across a variety of industries including travel, retail, direct selling and digital goods. With a focus on growing the cashless payments industry in India, Worldline aims to build superior solutions that serve the changing needs of consumers.
Deepak Chandnani, CEO of Worldline, South Asia and Middle East said: "India is one of the largest cash markets globally. The POS sector benefited greatly from demonetization and cornered a large share of incremental digital transaction value. We are accelerating our growth with a key acquisition of MRL Posnet. This significantly increases our local technological expertise. I am extremely happy to welcome within the Worldline Group the very experienced MRL Posnet team. Together, through the power of this combination, we are in a unique position to deliver the next generation of payment services for the digital commerce era. As illustrated, Worldline continues to focus on a key growth market like India to fast-track its growth strategy.”
Kishore Kothapalli, Managing Director, MRL Posnet said: "By joining forces with Worldline, MRL Posnet gains a strategic owner with deep expertise in the global payments processing industry, giving us the opportunity to expand our capabilities and further extend our investment in and commitment to operational excellence for the benefit of our clients. Like MRL, Worldline is committed to the payments business and enterprise clients. We look forward to the strength and increased differentiation that results from the combination, including expanded service flexibility, continued investment into back-office reconciliation and reporting capabilities, and a shared commitment to helping our clients expand their businesses."
About the Transaction
1.The deal is closed at a value of up to € 89 million
2.This acquisition will leverage MRL Posnet’s product functionalities across India where Worldline operates, driving substantial revenue and technological synergies. It also allows Worldline to add major banks of South India to their client list.
3.Worldline views the MRL Posnet as a strategic step to strengthen its proposition in India. The aim is to offer better technological solutions to existing and new clients with the expertise of Worldline’s switch capabilities and MRL’s device-agnostic acquiring solutions
The transaction is closing at the end of October 2017. The transaction is subject to regulatory and antitrust authorities’ approvals, and other customary closing conditions.
Signal Hill India acted as the exclusive financial advisor to MRL Posnet on this transaction. Cyril Amarchand Mangaldas acted as the sole legal advisor to MRL Posnet for the transaction. Trilegal acted as the sole legal advisor to Worldline SA for the transaction.
Worldline is the European leader in the payments and transactional services industry. Worldline delivers new-generation services, enabling its customers to offer smooth and innovative solutions to the end consumer. Key actor for B2B2C industries, with over 40 years of experience, Worldline supports and contributes to the success of all businesses and administrative services in a perpetually evolving market. Worldline activities are organized around three axes: Merchant Services, Mobility & e-Transactional Services, Financial Processing & Software Licensing including equensWorldline.
In India, Worldline provides end-to-end solutions in issuance processing, acquiring processing, online/mobile payments and loyalty management solutions. It is the only third party processor to offer services across the payments value chain. Worldline is the largest acquiring processor in India and services more than 750,000 terminals and 100,000 QR code touch points across 1,600 locations. It offers comprehensive services under a ‘Design, Build, Host and Deploy’ model along with uniquely tailored value-added propositions. Worldline is also a significant player in card issuance as well with millions of credit, debit and prepaid cards issued and managed for customers.
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