Nilson Report

Issue 1186 | Nov 2020

FEATURED COMPANIES

Companies featured in this issue include:

Largest Credit Card Portfolios Worldwide

Market Shares of Top Issuing Countries Ranked by Outstandings in 2019

Ten-Year Change in Market Shares for the U.S. vs. China

Largest Credit Card Portfolios Worldwide

Latin America´s Top 10 Mastercard and Visa Issuers
2009 vs. 2019

Top General Purpose Card Issuers in Latin America

Top Credit Card Issuers in Latin America

Top Debit Card Issuers in Latin America

Visa and Mastercard Commercial Credit Cards in Canada

Small Business Credit Cards in Canada

Corporate Cards in Canada

Purchasing and Fleet Cards in Canada

Investments & Acquisitions—October 2020

Top Credit Card Issuers in Latin America

The 50 largest issuers of credit cards in Latin America at year-end 2019 based on purchase volume (spending for goods and services) are ranked on page 10. The 5 largest are shown below.

1. Itau Unibanco, Brazil
$100.96 billion purchase volume
2. Banco Bradesco, Brazil
$49.95 billion purchase volume
3. Banco Santander, Brazil
$40.92 billion purchase volume
4. Banco do Brasil, Brazil
$38.54 billion purchase volume
5. BBVA, Mexico
$17.16 billion purchase volume

Full access to the Top Credit Card Issuers results in Latin America is available when you subscribe to the Nilson Report.

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POSTED NOV 18, 2020 | PRINT

Nexi to Purchase Nets Processing in Europe

Less than a month after executing a deal to acquire cardholder and merchant processing and other assets of Italy-based SIA, Nexi, also based in Italy, has signed a binding framework agreement to acquire the cardholder and merchant processing assets of Denmark-based Nets. The all-stock transaction, valued at $9.20 billion (€7.20 billion), is expected to close in the second quarter of 2021. The Nexi takeover of SIA, which was valued at $5.30 billion (€4.60 billion), is expected to close in the third quarter of 2021.

Nets is owned by private equity firms Hellman & Friedman, CIC, Advent International and Bain Capital. The investors paid $5.50 billion in 2018 to delist Nets from the Nasdaq Copenhagen Exchange. Last year, they sold Nets’ Corporate Services business to Mastercard for $3.19 billion (€2.85 billion).  

Before becoming publicly traded on the Milan Stock Exchange in March 2019, Nexi was owned by Advent, Bain and Italy-based Clessidra. Advent and Bain once owned Nets. They bought it in 2014 and took it public in 2016. 

The private equity owners of Nets, which will own 39% of the combined company, are required to remain shareholders in the new company for periods ranging from 6 to 24 months. That 39% stake will drop to 31% when Nexi’s SIA acquisition is fully completed.

Negotiations between Nexi and Nets are said to have identified annual savings in the $202-million (€170-million) range. The companies will have bank and merchant customers in Italy, Central Europe and the Nordic countries. 

Nets owns the 5th largest merchant acquiring portfolio in Europe. Nexi owns the 19th largest. The combination will push the new company to rank 4th largest. In addition, SIA, which is not an acquirer, provides accounting services to 1.1 million merchant locations. Nexi is in the process of migrating all of its merchant processing business to the card management software platform of Openway.

When the Nexi/Nets deal is closed, the new company will be Europe’s largest merchant/cardholder processor based on transactions processed and annual revenues. Market capitalization on the Milan Stock Exchange of the combined Nexi/SIA/Nets is projected to be in the $26-billion range (€22 billion). CDP Equity will own 17%, Hellman & Friedman 16% and Advent/Bain 10%.

Currently, Europe’s largest processor by market capitalization is merchant acquirer/processor Adyen. Its stock, which trades on the Euronext Amsterdam exchange, had a market cap of $49.43 billion on November 16, 2020. 

Worldline, which completed its acquisition of Ingenico last month, will be third largest. Also a merchant and cardholder processor, Worldline’s market capitalization on the Paris Stock Exchange was $20.01 billion on November 16, 2020.

When the Nexi/SIA/Nets combination is completed, the company will provide processing for over 170 million cards and 2.3 million merchants. Total issuing and acquiring card transactions processed annually will be in the 28-billion range.

Revenues of the new Nexi will be approximately $3.35 billion (€2.90 billion). Integration of Nets with Nexi will occur in 2022 after the Nexi/SIA integration has been completed. Current Nets management will run the company as a stand-alone business until then.

Prior issues: 1184, 1183, 1181, 1175, 1159, 1157, 1150, 1133, 1117, 1068



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