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Mastercard is reportedly selling its real-time payments division, which it acquired in 2019 for $3.2 billion.
Investing.com - According to a report from the Financial Times on Thursday, Mastercard is seeking to sell its real-time payments business, which it acquired from Denmark’s Nets Group for $3.2 billion in 2019. This move will reverse the largest acquisition deal for the credit card company.
The report states that the company has hired investment bankers to lead the sale of the business, which could attract the interest of private equity groups. Mastercard’s selling price is expected to be significantly lower than the original acquisition price.
The business unit provides inter-account payment services in Europe, generating annual revenue of about $370 million, with earnings before interest, taxes, depreciation, and amortization of around $100 million.
Mastercard initially acquired the business to transform from a single card payments company into a multi-channel payments group serving merchants, banks, and governments.
The company has been looking to expand into other areas. Earlier this month, Mastercard acquired stablecoin infrastructure group BVNK for up to $1.8 billion. Mastercard stated that the deal would enable the company to provide end-to-end support for digital asset and value flows across currencies, channels, and regions.
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