Nordic payment service provider Nets has completed its previously announced PLN 315m ($83.86m) acquisition of Polish online payment service providers Dotpay/eCard from MCI.EuroVentures and Saltus TUW.
Nets said that the acquisition of Dotpay/eCard gives it access to one of the largest countries in the European Union with a growing economy and ecommerce volumes.
The transaction is expected to boost Nets’ presence in Europe while opening up new opportunities.
The company believes that Poland through cash to digital payments conversion, which is backed by its government’s cashless initiatives, has a high growth potential.
Nets signed an agreement to acquire Dotpay/eCard in June 2018. The Polish online payment service providers, which have a workforce of around 80 people, recorded gross revenues of more than €12m in 2017.
Nets CEO Bo Nilsson said: “With the acquisition of Dotpay/eCard we extend our presence in Europe and get access to new opportunities in Poland which is a high growth market, especially within the merchant services area.
“We aim to continue the strong development Dotpay/eCard have experienced in recent years through both investments into organic growth and further consolidation.”
Nets has retained Andrzej Budzik as CEO of the Polish payment service providers and also the two brands Dotpay and eCard.
Nets said that the two Polish online payment service brands are a highly complementary strategic fit to it. The Nordic payment service provider further said that the Polish brands with their product suite, mainly within eCommerce, Dotpay/eCard, complement it very well.
Furthermore, Nets and Dotpay/eCard are expected to benefit from increased industrial scale and synergies by joint innovation and other means.
MCI investment partner Łukasz Wierdak said: “Dotpay/eCard have developed tremendously over the past years and now, with Nets being a strategic investor, the future looks very promising for the group.
“This was a very successful investment for MCI generating 3.0x CoC and almost 40% IRR over a 3-year investment period. We are continuously looking to support companies from digital economy in their dynamic development.”
Last month, Nets expanded its cooperation to Finnish Savings Banks Group by further enhancing the latter’s clients’ card payment security with the integration of its new fraud prevention solutions.