US Bancorp's Elavon acquires Sage Pay for $300M

https://www.mobilepaymentstoday.com/news/us-bancorps-elavon-acquires-sage-pay-for-300m/
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US Bancorp's Elavon acquires Sage Pay for $300M

Hannah Fitzsimons, president and gm, at Elavon Merchant Services, Europe.

Elavon, the global merchant acquirer unit of U.S. Bancorp, has agreed to acquire Sage Pay, a U.K. and Irish payments gateway for small and medium sized businesses, for $300 million (232 million British pounds). 

Elavon said it is currently the fourth largest merchant acquirer in Europe, and the Sage Pay acquisition will help it extend its presence in the U.K. and Ireland and grow its SME space, where Sage has a loyal business following. 

“We are a customer focused company that is helping businesses succeed in a global marketplace that is changing rapidly,” Hannah Fitzsimons, president and general manager of Elavon Merchant Services, Europe, said in a press release. “This acquisition brings tremendous talent and leading technology to Elavon, which can be leveraged across the European market.”

Elavon has operations in the U.K., Ireland, Germany, Poland, Norway, Spain and Sweden and serves many companies in the hospitality, aviation, e-commerce and retail sectors, according to a spokesperson. Just last month Evalon acquired Sweden’s Payius, an exclusive provider of merchant acquiring services in Sweden, Denmark and Finland. 

Sage Group said in a regulatory filing that Sage Pay would remain an important partner after the deal, noting the company had 41 million pounds ($53 million) in revenue and 15 million pounds ($19 million) in operating profit at the end of fiscal 2018. 

“Our vision of becoming a great SaaS company for customers and colleagues alike means we will continue to focus on serving small and medium sized companies with subscription software solutions for accounting and financials and people and payroll,” Sage CEO Steve Hare said in the filing announcing the sale. “Payments and banking services remain an integral part of Sage’s value proposition and we will deliver them through our growing network of partnerships, including Elavon.”

The agreement is subject to regulatory approval. Elavon Financial Services DAC, which trades as Elavon Merchant Services, is regulated by the Central Bank of Ireland and Prudential Regulation Authority and is subject to limited regulation by the U.K. Financial Conduct Authority and the Prudential Regulation Authority. 

Cover image: Elavon.

 


Topics: Mergers & Acquisitions, Region: EMEA, Retail, Transaction Processing

Companies: Elavon


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