Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  JP Morgan Chase & Company    JPM

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Switzerland's SIX looks at potential $2 billion sale of payments unit - sources

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/20/2017 | 08:27pm CET

Swiss stock exchange operator SIX Group has hired JPMorgan (>> JP Morgan Chase & Company) to look at options for its payments unit, including a sale worth up to 2 billion Swiss francs (1.53 billion pounds), sources familiar with the plans told Reuters.

Swiss stock exchange operator SIX Group has hired JPMorgan (>> JP Morgan Chase & Company) to look at options for its payments unit, including a sale worth up to 2 billion Swiss francs (1.53 billion pounds), sources familiar with the plans told Reuters.

The decision to kick off a strategic review comes amid a wave of mergers and acquisitions in the fragmented payments industry as consumers increasingly switch to card and mobile payments and as regulatory changes promise to open the market to more competition.

Several private equity groups have bought payments businesses to merge them with peers while some European companies are currently carrying out strategic reviews or have already hired banks to find new investors amid rising industry valuations.

Zurich-based SIX helps process payments and provides debit and credit card terminals to retailers, restaurants and hotels. The annual core earnings of its payments business are about 145 million Swiss francs, a person familiar with the matter said.

SIX may still opt for a stock market listing or could decide to sell a minority stake, the sources said.

Any sale could fetch a multiple of about 14 times its expected core earnings, people familiar with the industry said.

SIX and JPMorgan declined to comment.

For decades, payments firms have existed as a backwater in the banking landscape. Usually set up by banks, they enjoyed a cosy relationship with them as customers but had little funds at their disposal to invest in technology.

A new European Union directive is set to come into force next year which requires banks to open up their procurement of payments services to third parties.

Technology newcomers including Adyen, iZettle, Square and Stripe are among a wave of fintech players who are trying to disrupt the relationship between banks and payment processors to widen options for how merchants are paid.

DEAL FRENZY

Mastercard kicked off the consolidation in the sector last year with the purchase of UK's Vocalink and the pace has picked up over the past few months, with a series of deals in recent weeks driving valuations higher.

This summer, Portuguese banks have hired Deutsche Bank to review options for their payments firm SIBS, while Germany's savings banks are looking for a buyer of a minority stake in their BS Payone unit, sources familiar with the matter told Reuters.

Austrian banks have asked HSBC to kick off a sales process for their payments business Card Complete, the sources said.

Sources familiar with the negotiations expect SIBS to reach a valuation of 400-500 million euros in any potential deal, similar in value to BS Payone, which is being marketed by advisor EY Innovalue.

Austria's Card Complete is seen reaping less than half that, they said, but it could whet the appetite of some sector rivals including Germany's Concardis.

Advent and Bain, which bought Concardis earlier this year, have said they want to use the company as a platform for further consolidation.

Private equity groups such as Advent, Bain, Warburg Pincus, Blackstone and CVC are expected to participate in the various auctions, the sources said.

Concardis was valued at about 700 million euros, representing a multiple of 13 times its expected core earnings, while other deals valued payments firms at more than 18 times.

The owners of SIBS, BS Payone, Card Complete and their advisers as well as the potential bidders declined to comment.

Separately, buyout funds Hellman & Friedman, Permira and Nordic Capital are currently circling Danish payment services firm Nets (>> Nets).

Among the many other deals, U.S. credit card processor Vantiv (>> Vantiv Inc) is buying Britain's Worldpay (>> Worldpay Group), French Ingenico (>> Ingenico Group) is buying Stockholm-based Bambora and private equity funds Blackstone and CVC have teamed up to buy Britain's Paysafe while rival Permira has bought a stake in Klarna.

(Additional reporting by Francois Murphy, Andrey Khalip, Ben Martin, Eric Auchard; Editing by Elaine Hardcastle)

By Arno Schuetze, Pamela Barbaglia and Oliver Hirt

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on JP MORGAN CHASE & COMPANY
12/14 JP MORGAN CHASE MPANY : Newsbriefs
12/14 JP MORGAN CHASE MPANY : Fund for Detroit minority small business owners swells t..
12/14 JP MORGAN CHASE MPANY : Kroger launches new mobile payment option
12/14 Intertrust hires new CEO and launches Luxembourg AIFMD offering
12/13 JP MORGAN CHASE MPANY : Detroit’s Entrepreneurs of Color Fund Nearly Tripl..
12/13 JP MORGAN CHASE MPANY : Kroger and Chase Pay Announce Mobile Payment Partnership..
12/13 HSBC : JP Morgan and American Express back cyber startup Menlo Security in $40m ..
12/12 JPMORGAN CHASE & CO : Other Events, Financial Statements and Exhibits (form 8-K)
12/12 JP MORGAN CHASE MPANY : JPMorgan Chase Declares Common Stock Dividend
12/12 Alony Hetz raising $375m for US unit Carr
More news
News from SeekingAlpha
12/14 Test Portfolio Results And Introducing A New Quality Portfolio
12/14 Year End Report Card On My Bank Recommendations
12/14 WALL STREET BREAKFAST : Mouse Hunts Down The Fox
12/14 IBM teams up for quantum computing push
12/13 DIVIDEND SECTORS IN REVIEW : Top 3 Picks In The Financial Sector For 2018
Financials ($)
Sales 2017 102 B
EBIT 2017 40 896 M
Net income 2017 24 992 M
Debt 2017 -
Yield 2017 2,00%
P/E ratio 2017 15,26
P/E ratio 2018 13,81
Capi. / Sales 2017 3,58x
Capi. / Sales 2018 3,40x
Capitalization 366 B
Chart JP MORGAN CHASE & COMPANY
Duration : Period :
JP Morgan Chase & Company Technical Analysis Chart | JPM | US46625H1005 | 4-Traders
Technical analysis trends JP MORGAN CHASE & COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 100 $
Spread / Average Target -4,8%
EPS Revisions
Managers
NameTitle
James Dimon Chairman & Chief Executive Officer
Marianne Lake Chief Financial Officer & Executive Vice President
Lori A. Beer Chief Information Officer
Rohan Amin Chief Information Security Officer
Lee R. Raymond Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
JP MORGAN CHASE & COMPANY22.76%366 091
INDUSTRIAL AND COMMRCL BANK OF CHINA LTD33.33%309 691
BANK OF AMERICA30.23%300 819
WELLS FARGO7.71%292 716
CHINA CONSTRUCTION BANK CORPORATION28.49%239 452
BANK OF CHINA LTD13.95%207 103