|Bid||15.15 x 0|
|Ask||15.25 x 0|
|Day's Range||15.15 - 15.45|
|52 Week Range||12.55 - 18.19|
|Beta (5Y Monthly)||0.79|
|PE Ratio (TTM)||76.18|
|Earnings Date||Jul 30, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Rating Action: Moody's assigns a Ba3 rating to Nexi's new senior unsecured notesGlobal Credit Research - 12 Apr 2021Paris, April 12, 2021 -- Moody's Investors Service ("Moody's") has today assigned a Ba3 instrument rating to the new 2.1 billion senior unsecured notes due 2026 and 2029 to be issued by Nexi S.p.A. (Nexi or the company). The outlook on the rating is positive.Proceeds from the issuance of the new senior unsecured notes, together with the proceeds Nexi raised in February 2021 via the issuance of 1 billion senior convertible notes due 2028, will be used to part-finance Nexi's acquisition of SIA and Nets, announced in October and November, respectively.
(Bloomberg Opinion) -- Mashing together the plumbing of the payments industry has provided a steady stream of deals for bankers. With Nexi SpA inking its agreement to buy Nets S/A over the weekend, the European sector now looks to be coalescing around two players, one French and one Italian. But this is probably only the end of the beginning for consolidation.Nexi’s combination with private-equity-owned Nets, plus its recent deal to buy SIA in Italy, will create a company with an enlarged market value implicitly north of 20 billion euros ($24 billion). French rival Worldline SA, which agreed to buy domestic peer Ingenico SA earlier this year, is likewise worth around 20 billion euros. Lots of smaller deals by these various companies have created what now appears to be a neatly concentrated listed sector. But that doesn’t mean the dealmaking is over.The U.K. has been oddly left out of the action despite London being Europe’s financial center. The emergence of sizeable European payments firms has arguably been a missed opportunity for the likes of Barclays Plc, Lloyds Banking Group Plc and Natwest Group Plc, the original owner of Worldpay, now part of Fidelity National Information Services Inc. Worldpay could have chosen to be a European consolidator, but instead pivoted to the U.S. and global e-commerce, and was soon gobbled up.Barclays’s payments assets could potentially be a platform on which to build. But for now, London’s interest in this story is mainly about the teams at private equity firms Advent International Plc, Bain Capital and Hellman & Friedman that have led the growth of Nexi and Nets. Buyout firms will still own a significant minority holding in Nexi after its recent transactions and they have agreed to lengthy lockups.For all of the activity, the European payment market remains fragmented. The major U.K., French and Spanish banks sit on platforms that would make logical disposal candidates at the right price. It’s not easy for them to commit capital to these operations and lead expansion by acquisition.So there’s probably no shortage of available transactions to fuel continued expansion at Nexi and Worldline — or even a fresh roll-up vehicle. Nexi’s pro-forma leverage, while high on a snapshot basis at over three times Ebitda, is expected to fall to 2-2.5 times Ebitda in 2022. That suggests its main constraint to doing more deals will be the demands on management rather than financial firepower.The valuations available for selling payments assets continue to advance. Nexi and Fidelity National have gone from trading at mid-teens multiples of forecast Ebitda to almost 20 times in the last year.Vendors will be increasingly wary of risking looking like fools for selling assets at prices that look too cheap later. But the temptation to cash in at these levels will remain strong. The payments M&A merry-go-round spinning for a while yet.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- It looked like proof that private equity had more money than sense — a pricey $6 billion consortium deal for Nordic payments group Nets A/S led by Hellman & Friedman in late 2017. The transaction may yet prove the naysayers wrong.At the time, Hellman & Friedman Chief Executive Officer Patrick Healy told the Financial Times the buyout firm had paid more than it wanted to, but “that’s what was required to get the deal done.” Three years on and Italian payments peer Nexi SpA is in talks to buy Nets in exchange for a stake in the enlarged company, taking it public for the second time in five years.Nexi says it would value Nets on an equivalent multiple of 2020 expected Ebitda. Its own multiple was nearly 18 times as of Friday but has been higher in recent months. On that basis, Nets would be worth around 7.2 billion euros ($8.4 billion) assuming its roughly 400 million euros of Ebitda last year has held firm. Deduct net debt and the equity is then worth around 5.4 billion euros.The Hellman & Friedman consortium wouldn’t get all that value. Nets bought another payments group, Concardis, for stock in 2019. Assume that diluted the original private equity owners to an 80% holding and their share of the value from a Nexi tie-up would be worth around 4.3 billion euros. Still, the equity in the original buyout was just 2.7 billion euros, a Nets bondholder presentation suggests. If no other money has gone in or out since, the annualized returns would be running in the high-teens percent.Those gains partly reflect the fact that Hellman & Friedman is selling Nets on a higher multiple of profit than it originally paid. No buyout baron should ever bet on achieving that. Even so, the reality is that listed payments groups trade on stronger profit multiples now than they did three years ago. Leverage amplifies the effect.Did Hellman & Friedman add any value itself? Its overhaul of the business isn’t immediately apparent in revenue and Ebitda numbers that look barely changed from 2017. But the private equity owners added capabilities Nets lacked, in mobile payments and analytics, and expanded its footprint with the acquisition in Germany. A subscale division was sold to Mastercard Inc. Without this re-jigging, Nets would have arguably been a less desirable partner, too narrow in its services and its geographical presence.The final returns will emerge over time whenever the consortium chooses to sell down. The realization of the touted financial benefits of a Nexi merger — an unitemized 150 million euros annually — would provide some extra uplift. Public-market investors in Nets will be wondering if they shouldn’t have sold. But it didn’t feel that way at the time, and it’s not clear they would have endorsed the strategy and leverage that private equity brought to bear here. As things stand, Healy looks set to claim vindication.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.