US private equity firm Advent International has agreed to acquire a 51% stake in Argentine payments company Prisma Medios de Pago from a group of banks in Argentina and Visa International.
Image: Advent to acquire 51% stake in Prisma Medios de Pago. Photo: courtesy of rawpixel/Unsplash.com.
The deal, which values 100% of Prisma Medios de Pago at $1.42bn, will see the company’s existing shareholders retain a stake of 49%.
The payments company, which was created in 2014 by the merger of Visa Argentina and Banelco, offers payment technology solutions that enable connections between financial institutions, merchants and consumers.
Prisma Medios de Pago president and CEO Diego Maffeo said: “We are pleased to welcome a leading global investor such as Advent International as a new shareholder.
“Advent brings deep sector expertise, a broad international network and significant financial resources to support our continued growth and leadership in payments, both in Argentina and beyond.”
According to Advent International, the company is a leading player in merchant acquiring, point-of-sale rental (LaPOS), transaction processing, e-commerce gateway (Decidir), and other value-added services to all types of merchants in Argentina.
Prisma Medios de Pago is also regarded as a major player in payments processing, in electronic bill payments through the brand Pagomiscuentas while being one of the top ATM operators in the country through the Banelco brand.
It is said to process over seven billion transactions annually and has a workforce of more than 1,300 people.
Outside Argentina, the payments company provides issuer and merchant acquiring processing services to clients across 14 Latin American countries.
The company has also made a mark in peer-to-peer (P2P) transactions through its new brand TodoPago through which it offers e-wallet, mobile point-of-sale (mPOS), Quick Response (QR) code payment solutions along with e-commerce transactions to merchants.
Advent International managing partner in São Paulo Juan Pablo Zucchini said: “Prisma Medios de Pago is the leading player in a market poised for strong growth driven by the increasing penetration of electronic payments in Argentina.
“We look forward to working with the management team and other shareholders to accelerate the company’s development by investing in next-generation products and services and exploring international expansion opportunities.”
Subject to customary closing conditions, the transaction is anticipated to be closed at the end of this month.