The transaction, which has been approved by the Competition Commission of India (CCI) last month, is terminated due to non-fulfilment of certain conditions before the deadline of 30 September 2022, under the terms of the agreement
Prosus terminates acquisition of BillDesk. (Credit: Towfiqu barbhuiya on Unsplash)
Dutch investment company Prosus has terminated its previously signed agreement to acquire the Indian digital payments provider BillDesk for $4.7bn.
In August last year, Prosus’ subsidiary PayU Payments Private Limited (PayU), had signed an agreement with the shareholders of BillDesk, for the potential acquisition.
The acquisition was subject to satisfaction of several customary conditions, including approval by the Competition Commission of India (CCI).
Last month, PayU obtained the CCI approval for its acquisition of BillDesk.
However, certain conditions were not fulfilled before the deadline of 30 September, which automatically resulted in the termination of the agreement, under its terms, said Prosus.
According to news agency Mint, shareholders of BillDesk received a mail stating termination of the agreement, just two hours before the deadline.
The shareholders received notice of the deal termination from Law firm Trilegal, on behalf of PayU and Prosus.
BillDesk is a Mumbai, India-based online payments company that provides an online payment platform to enable banking and merchant website transactions.
The company offers biller network solutions including a full-stack platform for billers, agents, and Bharat Bill Payment Operating Units (BBPOUs).
Prosus has been a long-term investor and operator in India, which has strengthened its position in the country’s payments industry through PayU India.
The company wanted BillDesk to be PayU’s fourth acquisition, after the purchase of payment technology firm CitrusPay in 2016 for $160m, and Paysense in 2020 for $185m.
The transaction was anticipated to create a financial ecosystem in India, addressing the changing payment needs of digital consumers, merchants, and government enterprises.
It was delayed for around one year, due to several competition concerns.
Earlier this year, the Indian competition watchdog requested both parties for additional information and approved the transaction last month.
Furthermore, the acquisition is considered one of India’s largest, after Walmart’s 2018 acquisition of Indian e-commerce giant Flipkart, for $16bn.