SIA Acquisition: Key Details, Impact, and What Comes Next

Nexi's acquisition of SIA marks a significant milestone in the European payments industry. Announced on October 5, 2020, this merger aims to create a fully integrated European PayTech leader. The combined entity is expected to enhance its competitive positioning, offering comprehensive digital payment solutions and driving the transition towards a cashless economy.

What Is SIA?

Founded in 2021, SIA specializes in a wide array of digital payment solutions, including payment acceptance, business payment solutions, and digital corporate banking. The company stands out in the market with its comprehensive range of services tailored for various segments such as businesses, consumers, and financial institutions. SIA's unique selling points include its extensive European reach combined with local relevance, innovative partnerships, and a strong focus on ESG principles and technological integration.

Who Acquired SIA?

Nexi is a leading provider of digital payment solutions in Italy, offering a wide range of services to facilitate secure and efficient transactions for businesses and consumers. Key products include various POS systems like SmartPOS and Mobile POS, e-commerce solutions such as XPay, and a range of payment cards for personal and business use. Nexi holds a significant market position, recognized for its innovative products and comprehensive solutions tailored to different business sectors.

When Was SIA Acquired?

Nexi's acquisition of SIA was officially announced on October 5, 2020, with the merger becoming effective on December 31, 2021. This strategic move came at a time when the digital payments industry was rapidly evolving towards a cashless economy. The merger aimed to consolidate their market positions, leveraging combined resources to offer comprehensive digital payment solutions. This period saw significant investments in technology and innovation, driving the transition to a more integrated and efficient digital payments ecosystem.

Why Was SIA Acquired?

• Market Expansion: The acquisition of SIA by Nexi significantly enhances their market presence across Europe. The merger creates a fully integrated European PayTech leader, expanding Nexi's geographic footprint and diversifying its customer base. This strategic move positions the combined entity to seize consolidation opportunities at the international level.
• Technology Integration: Nexi benefits immensely from SIA's advanced payment technologies and infrastructure services. The merger includes the creation of a new technology and digital innovation center, which will provide a portfolio of best-in-class solutions. SIA's expertise in mission-critical payment technology and infrastructure services further strengthens Nexi's technological capabilities.
• Competitive Advantage: The merger with SIA significantly bolsters Nexi's competitive positioning in the European digital payments market. The combined entity is expected to generate substantial value creation, including €150 million in fully-phased recurring cash synergies. This scale and comprehensive range of innovative solutions enhance their ability to serve all market segments, positioning them as a leading player in the fast-consolidating payments industry.

Acquisition Terms

• Acquisition Price: The acquisition price for SIA was approximately €4.6 billion (equivalent to almost $5.4 billion).
• Payment Method: The transaction was executed as a stock deal, with an exchange ratio of 1.5761 newly issued Nexi shares for each SIA share.
• Key Conditions or Agreements:
  • The merger became effective on December 31, 2021, at 23:59.
  • Nexi’s shareholders own 70% of the combined entity, while SIA’s investors hold the remaining 30%.
  • A shareholders' agreement involving CDP Equity S.p.A., FSIA Investimenti S.r.l., and others established the governance structure of the new group.
  • Regulatory approvals and publication of the prospectus for Nexi shares were required.
  • Paolo Bertoluzzo was confirmed as CEO until the end of his current term and for the subsequent term until December 31, 2024.
  • New directors were appointed, and some existing directors resigned as part of the governance reorganization.

Impact on SIA

The acquisition of SIA by Nexi has led to significant changes in operations and management. The merger, effective from January 1, 2022, resulted in a reorganization of the governance structure, with several new directors appointed and some existing directors resigning. The combined entity now operates under a unified management team, with Paolo Bertoluzzo confirmed as CEO until December 31, 2024. This restructuring aims to streamline operations and enhance the strategic direction of the new PayTech leader, leveraging the strengths of both companies to drive innovation and growth in the digital payments sector.

In terms of product offerings and services, the merger has expanded the capabilities of the combined entity, positioning it as a leader in the European digital payments market. The integration of SIA's advanced payment technologies and infrastructure services with Nexi's comprehensive digital payment solutions has created a robust portfolio that caters to various market segments. While specific employee and customer reactions are not detailed, the strategic move is expected to foster a positive environment for innovation and customer satisfaction. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.