The fate of nexi it is uncertain and has become a thorn in my side of the Italian government which is in its capital through Deposits and Loans Fund. Different hypotheses are being studied to try to reinvigorate it. One of these is the hypothesis of integration di nexi with French Worldline: on the table for some time in an attempt to face US competitors, it has returned to the forefront with the operation of share exchange between Post Office and Cdp. The Italian government does not like this hypothesis very much, reports Reuters, fearing obstacles from France on the employment front. But, of course, it remains a dossier on the table, together with those of the Nexi delisting and privatization of the company with some co-investors who should intervene to relieve it from the control of the market and reduce the accumulated debt load. Nexi will present its 2024 financial statements next 28 February.
The merger hypothesis is seen as obvious by investment bankers and analysts
An integration between Nexi and Worldline, a leading European payments company, has long been considered an option obvious among investment bankers, also because the titles of both travel on historical minimums, in order to be able to to compete with US competitors like PayPal, visa e MasterCardThe topic has returned to the forefront in recent days, on the occasion of the announcement of the'swap operation: Poste Italiane would acquire 9,8% of Tim from CDP in exchange for its 3,8% of Nexi with a cash compensation. If the operation were to be successful, CDP would go from the current 14,46% to 18,24% in the capital of Nexi (making it the second largest shareholder after H&F, which holds 21,2%). The Nexi title is exchanged at Business Square at about half of the 9 euros per share with which it presented itself to the market in 2019: this morning it is at 4,65 euros, down 1,23%.
“The increase in Cdp's direct share in Nexi should be interpreted as a desire for the Cassa to have a greater hold on the company, also in terms of possible extraordinary operations, such as the sale of the national interbank network” – the one brought as a dowry by Sia – “or a merger with Worldline”, argue Sia Intermonte is Equity.
With the aim of reducing dependence on non-EU operators, the ECB has indicated the fragmentation of the sector as a factor hindering investments and competitiveness. In these very days, moreover, PayPal and JPMorgan Payments have announced a partnership agreement to expand the services they offer to merchants in the UK and Europe.
A path full of obstacles
The path to theintegration between Nexi and Woldline it is however rather bumpy and full of obstacles. The problem with this hypothesis is above all occupational: the impact would be greater for Worldline, which at the end of 2023 had approximately 18.000 employees in over 40 countries, compared to approximately 10.500 for Nexi. Furthermore, the Italian government considers the regulatory framework, as the two companies operate in many countries, sources say Reuters adding that so far there have been no concrete dialogues between Italy and France.
Although it is known that some shareholders of Nexi's fund are considering an exit, given the number of years they have invested in the company, the company has attracted interest from other groups of private equityThe decline in the stock makes it difficult for shareholders of Nexi funds to exit, especially since the entry levels are very different, sources had previously explained.
Wordline stock is in free fall since 2021: -91%. 2024 data below expectations
Le Worldline shares have fallen 91% since mid-2021 – when investor enthusiasm for payments companies peaked – after launching three profit warnings within a year and after the departure of long-time CEO Gilles Grapinet in September. This morning Wordline announced its 2024 results and its first guidance for 2025. Both were slightly lower than consensus expectations. EPS 2024 is 1,53 versus consensus of 1,6, revenues for the fourth quarter of 2024 fell 0,9% year-on-year to 1,18 billion versus estimates of 1,19 billion. For the current year, the company expects revenue growth similar to 2024 (so +0.5% versus consensus of +2%). Further details on the 2025 outlook will be provided on April 23rd on the occasion of the presentation of the first quarter results, while the appointment of Pierre-Antoine Vacheron as new CEO was announced (the next strategic plan will be presented in the fall).
Bancomat acquires majority stake in FlowPay
Still in the digital payments sector, in Italy, ATM announced the acquisition of 84.5% of FlowPay, a fintech based in Florence and specialized inopen banking. The transaction is expected to be completed around mid-2025. The company operates in open banking with reference to the system of exchange of information between banks and other financial operators allowing users to aggregate in onesingle app for current accounts from different institutions. Through this acquisition, Bancomat will also be able to offer the connection to the PagoPa platform to institutions that have not yet developed it, or study solutions such as locked payment, a system that allows you to block sums in the buyer's account and transfer them to the seller automatically as soon as the conditions agreed between the parties come true.
