Advent International and Bain Capital Private Equity to acquire leading German payment service provider Concardis
- Plan to support further growth through investment in innovation and infrastructure
- Concardis offers strong platform for consolidation and international expansion
- New owners bring significant experience in payments sector globally
ESCHBORN, GERMANY, 13 January 2017 – Advent International and Bain Capital Private Equity (the “Consortium”) today announced that they have signed a definitive agreement to acquire Concardis GmbH, a leading German payment service provider, from a group of German private banks, co-operative banks, savings banks and DZ Bank. Financial terms of the private transaction were not disclosed.
Concardis has been a joint venture of the German banking sector until now, and the change in ownership marks the beginning of a new phase of investment and planned expansion. Originally focused on connecting retailers to credit card systems, in recent years Concardis has developed a leading position as a full-service payment provider in the DACH region (Germany, Austria and Switzerland). The company has expanded its suite of services across the payments value chain, strengthening its capabilities in e-commerce, omnichannel payments and value-added services for its merchant customers, both organically and through strategic acquisitions. Over the past two years, Concardis has grown its transaction volume by 19.1 percent from €35.2 billion to €41.9 billion.
The new owners, Advent International and Bain Capital Private Equity, bring significant sector expertise, operational resources and capital to help accelerate Concardis’ growth and internationalisation strategy. Collectively, they are the most experienced private equity investors in the payments sector globally and have completed over 20 investments in market segments relevant to Concardis. Most recently, Advent International and Bain Capital Private Equity have supported the development of ICBPI and ISP Processing in Italy, Nets (OMX: NETS) in the Nordic region and Worldpay (LSE: WPG) in the UK.
Christophe Jacobs van Merlen, a Managing Director at Bain Capital Private Equity, commented, “We have been following Concardis closely for some time and have been impressed by its growth and the management team’s strategic vision and execution abilities. By increasing investment in innovation, infrastructure and skills, we will help Concardis become the payments champion in the DACH region.”
Jeff Paduch, a Managing Director at Advent International, added, “We see a significant opportunity in the German market for a best-in-class merchant-facing proposition in payments. Concardis is the ideal platform to drive consolidation in the market, and we look forward to supporting the business with additional capital to achieve this.”
Marcus W. Mosen, CEO of Concardis, said, “With Advent International and Bain Capital Private Equity, Concardis will have financially strong partners to support the continued growth and internationalization of the business. The payment industry is undergoing significant consolidation, and we want to be active participants in this process. Advent International and Bain Capital Private Equity consider Concardis to be the right platform for establishing a leading international payment service provider based in Germany. This is good for the company, our employees and our customers, and we are very excited about this development.”
Dr. Andreas Martin, Chairman of the Supervisory Board at Concardis, added, “The successful sale of Concardis is a confirmation of the strength and sustainability of the company. The investment from leading global private equity firms such as Advent International and Bain Capital Private Equity is a vote of confidence in the long-term potential of the business and its employees. With its new ownership Consortium, Concardis will remain an independent payment service provider, advancing its plans to expand internationally from its base in Germany.”
The completion of the transaction is subject to certain conditions, including approval by the Federal Financial Supervisory Authority (BaFin) and the German Federal Bank.
Over the course of the transaction, Advent International and Bain Capital Private Equity were advised by Morgan Stanley, Goldman Sachs, HSBC, Corestar Partners and Weil, Gotshal & Manges LLP. The coordinators for the selling shareholders were Deutsche Bank and Commerzbank, with Hogan Lovells International LLP as legal advisor.
Concardis is one of Europe’s leading payment service providers. With over 30 years’ experience in payment processing, the company offers intelligent solutions to meet the extensive requirements for a modern cashless payment process: ability to accept payments made with all major credit and debit cards, including card terminals and contactless payment processes for face-to-face retailers, innovative solutions for e-commerce and m-commerce, as well as support in the form of customer management. When it comes to high-performance payment solutions, Concardis is the provider of choice for some 110,000 customers at 210,000 locations using more than 470,000 connected terminals.
For more information, visit: www.concardis.com
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 315 private equity transactions in 40 countries and as of September 30, 2016, had $42 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 190 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After more than 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
For more information, visit: www.adventinternational.com
Bain Capital Private Equity
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since our founding in 1984. Our global team of approximately 220 investment professionals creates value for our portfolio companies through our global platform and depth of expertise in key vertical industries including consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications. In addition to private equity, Bain Capital invests across asset classes including credit, public equity and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.
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