Santander Group has announced an agreement to acquire merchant payment solutions company Elavon México. Currently, Elavon México operates in the country through its strategic partnership with Banco Santander México.
Santander Group will acquire all of the shares in Elavon México for MXN1,600m (approximately US$86m and €79m). The company will be 49% owned by Santander Mexico and 51% by Santander Merchant Platform Solutions (SMPS), which belongs to Santander Group.
In April 2019, the group announced plans to accelerate its growth in various global payment initiatives, including the creation of a global merchant acquiring business, building on the success of its Brazilian subsidiary, Getnet, in a business line with high growth potential. The group’s aim is to provide superior acquiring and payment services to merchants, enabled by its global merchant platform, to help companies grow their business.
With this agreement, Mexico becomes the first country in which Santander has acquired a business to accelerate this strategy. The bank’s aim is to unlock the value of all of the developments and functionalities of Getnet’s merchant services platform.
Elavon México operates Banco Santander’s merchant acquiring business in Mexico, a relationship which dates back to 2010. The new alliance ranks second in the Mexican merchant services market, with around 140,000 active customers (16% market share) and 250,000 card payment terminals as of December 2019. Additionally, 2019 exceeded 419 million transactions (23% more than 2018), that is, number of sales in physical and digital stores.
The bank says it expects to continue double-digit growth in the number of businesses and transactions, in addition to strengthening security and supporting businesses to have more payment options for their sales and thus reduce the use of cash.
“I am delighted with this agreement to acquire Elavon México together with Santander Merchant Platform Solutions, Santander Group’s new global merchant acquiring platform,” said Héctor Grisi Checa, executive chairman of Banco Santander Mexico. “We see excellent opportunities to continue developing the business, improve the value proposition for our customers and take advantage of economies of scale as other Santander markets connect to the platform.”
“The acquisition of Elavon México is an important step in the creation of a global merchant services business, which will provide added value to our customers,” added Javier San Félix, head of Santander Global Payments Services at Santander Group. “It will also enable us to unlock value in our Getnet merchant acquiring business and gradually extend our strengths to all our markets and customers through a single platform, open to third-party services. Mexico is the first of our markets to connect to the new platform, with the rest to follow in the near future.”
The close of this transaction is expected in the next few weeks.
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