Atos announced that its subsidiary Worldline [Euronext: WLN], European leader in the payments and transactional services industry, has entered into a definitive agreement to acquire 100 percent of the share capital of one of the fastest growing payment platforms in India – MRL PosNet, a technology-led, integrated merchant acquiring solutions provider, for a consideration up to c.€ 89 million, representing a transaction multiple based on the 2017 estimated OMDA a bit below Worldline’s current trading OMDA multiple. The transaction is financed by the available cash of Worldline.

Founded in 2008 and headquartered in Chennai, India, MRL PosNet employs approximately 140 highly skilled engineers in Payment in India. Operating an innovative and state-of-the-art terminal management platform, enabling very cost efficient deployment and management of new terminals, MRL PosNet currently processes payment transactions on behalf of 18 Indian banks, through the management of c.100,000 payment terminals.

Presenting a very strong growth track record since incorporation and an OMDA rate above Worldline’s OMDA rate, the transaction is expected to be immediately margin accretive, before synergies.

Gilles Grapinet, Worldline CEO said, “With the acquisition of MRL PosNet, we are significantly reinforcing our presence in the Indian market and leveraging Worldline India already successful development. Through this acquisition, we will intend to better support Indian banks and merchants in the remarkable development of the country towards digital payments, by enlarging our customer base in Southern India, by a low cost payment terminal sourcing adapted to the local market needs and by an efficient terminal management solution. Together, we are in a unique position to offer our Indian customers enhanced value propositions and to deliver the next generation of payment services for the digital commerce era. I am also extremely happy to welcome within the Worldline Group the very skilled team of MRL PosNet.”

Transaction benefits for Worldline and value creation

This acquisition presents an important milestone in the execution of Worldline’s strategy in India, as it will reinforce the Worldline’s existing business with a highly complementary asset. The combined service offerings, functionalities, reach and customer base are expected to deliver the following benefits:

  • Through a flexible modular platform architecture easily customizable to client-specific requirements, Worldline aims at offering enhanced value propositions to existing and new clients combining Worldline’s existing expertise with MRL PosNet’s innovative solutions;
  • This acquisition will leverage MRL PosNet’s product functionalities, driving revenue and technological synergies;
  • Through this transaction Worldline acquires a strong customer base of Banks in Southern India.

Worldine will integrate MRL PosNet in its Merchant Services Global Business Line. Worldline built a specific scheme to incentivize and retain MRL PosNet Top Management and Key staff including the founder and CEO.