The asset acquisition is expected to enable Santander to strengthen its merchant payment platform globally
Banco Santander has agreed to acquire certain technology assets from the merchant payments business of Wirecard in Europe, to speed up its growth plans for the region.
For the acquisition of the assets, the bank has reached an agreement with the insolvency administrator of several Wirecard entities, Dr. Michael Jaffé and Wirecard Bank AG.
Nearly 500 employees, who are currently managing the Wirecard’s technology assets included in the deal, are planned to be moved to Santander.
The team members will stay in their respective locations and become part of Santander’s global merchant services team operating under its Getnet global franchise.
Banco Santander executive chairman Ana Botín said: “At Santander, we aim to provide the best payment solutions and services to our customers.\
“The assets and talent we will gain as part of the acquisition will help us accelerate Getnet’s expansion plans in Europe, while also increasing our product development capacity.”
The acquisition to advance Getnet’s expansion in Europe
The acquisition is expected to advance Getnet’s expansion in Europe, and enhance the firm’s capabilities in e-commerce and multinational merchant servicing along with other payment services.
The technology assets Santander would acquire include payment solutions for merchants for acquiring and issuance services.
With the acquired assets, the company intends to extend its global open payments platform architecture, and create synergies in trade and payments.
The transaction is planned to be closed by the end of 2020, subject to certain conditions, including regulatory approvals.
Wirecard and Santander have agreed to work together to ensure current customers, vendors and partners a smooth transition to the new phase of the Wirecard service, until the asset purchase deal is closed.
In October 2020, Santander has announced its plans to consolidate its payments businesses, including Getnet within a new autonomous company called PagoNxt.
PagoNxt is expected to focus on advancing the growth in the business areas including merchant solutions, trade solutions for SMEs trading internationally, and consumer digital products and services.