Mastercard has launched a formal effort to divest the European real-time payments operation it purchased from Denmark's Nets Group in 2019 for $3.2 billion. Company executives have engaged investment bankers to lead a sale process, according to reports, signaling a potential unwind of what was Mastercard's largest acquisition to date.
The business, which enables rapid transfers between accounts across European banking networks, is reported to produce roughly $370 million in yearly revenue and about $100 million in earnings before interest, taxes, depreciation and amortization. Those financial metrics have been central to valuation conversations as advisers approach potential buyers.
Sources indicate the sale could attract interest from private equity firms. Mastercard, however, is expected to be prepared for an outcome that values the asset substantially lower than the $3.2 billion it paid in 2019.
When Mastercard acquired the unit from Nets Group, the strategic rationale was to broaden the company's role beyond card-based transactions and to build a multi-rail payments capability serving merchants, banks and public-sector clients. The unit has been an element of that broader push to offer account-to-account payments across European markets.
At the same time, Mastercard has continued to pursue other expansion avenues in payments infrastructure. Earlier this month the company announced the acquisition of stablecoin infrastructure provider BVNK for up to $1.8 billion. Mastercard stated that the BVNK deal would enhance its ability to provide end-to-end support for digital assets and to move value across different currencies, rails and regions.
The planned sale of the Nets-derived payments arm represents a significant portfolio shift and raises questions about how Mastercard will balance investments across legacy and emerging payments rails going forward. Details on the timeline for the sale, the names of the advisers or the list of potential bidders have not been disclosed.
Summary
Mastercard has engaged banks to sell the real-time European payments unit it acquired from Nets Group in 2019 for $3.2 billion. The business generates about $370 million in revenue and roughly $100 million in EBITDA. The company expects to receive a substantially lower price than its original purchase amount and the process may attract private equity buyers.
Impacted sectors
- Payments infrastructure and fintech
- Private equity and M&A advisory
- Banking and account-to-account clearing systems in Europe