To strengthen its operations in India, European payment services company Worldline has entered into an agreement to acquire 100 per cent stake in financial technology firm MRL PosNet for 89 million euros ($105 million).
Chennai-headquartered MRL PosNet is a technology-led, integrated merchant acquiring solutions provider, which claims to have 100,000 payment terminals and processes close to 1.13 billion euros worth of transactions an annual basis
The acquisition has provided Worldline with a strong customer base of banks in southern India. Founded in 2008, MRL PosNet has partnered with 18 banks for merchant services.
According to an official statement, Worldline will integrate MRL PosNet in its Merchant Services Global Business Line. The company has developed a specific scheme to incentivize and retain MRL PosNet Top Management and Key staff including the founder and CEO, it said.
“By joining forces with Worldline, MRL PosNet gains a strategic owner with deep expertise in the global payments processing industry, giving us the opportunity to expand our capabilities and further extend our investment in and commitment to operational excellence for the benefit of our clients,” MRL PosNet managing director, Kishore Kothapalli, said.
The transaction is subject to closing conditions and is expected to close before the end of October 2017.
Fintech has emerged as one of the most attractive sectors in the Indian investment circuit. Given the potential reach in the country, Indian fintech firms are also gaining popularity among global investors for buyouts and funding.
Last month, Ebix Inc., the parent firm of digital payments company Itz Cash Card Ltd, acquired the money transfer business of Paul Merchants Ltd through its Indian affiliate for $123 million. And, last year, digital payments provider PayU, which is owned by South Africa’s Naspers Group, bought rival Citrus Pay for $130 million.
Among investments, MobiKwik’s $50-million Series-C round and digital general insurance company Acko’s $30-million seed-funding were some significant plays in Indian fintech’s space.