European Event-Driven Analyst

Patryk Basiewicz

PGB Research

Event-Driven

On 15 November, Nexi SpA (NEXI IM) , the leading Payment company (PaymentCo) in Italy reached an agreement to purchase Nets, a European peer, who has roots in the Nordics but recently has expanded into Central, Eastern and Southern Europe. It is an all-share deal, but with Nexi assuming EUR1.8bn of Nets' debt.The headline value of Nets is EUR7.8bn, but with an earnout component of EUR250, the headline value is closer to EUR8bn. This why, below, my deal multiple is at 21.1x, based on 2020E numbers, is somewhat larger than the ~20x that Nexi claims it the deal multiple. Note Nets went private at 19x EV LTM / EBITDA in 2018. Below I analyse the valuation implications for Nexi from this move.

On 15 November, Nexi SpA (NEXI IM) , the leading Payment company (PaymentCo) in Italy reached an agreement to purchase Nets, a European peer, who has roots in the Nordics but recently has expanded into Central, Eastern and Southern Europe. It is an all-share deal, but with Nexi assuming EUR1.8bn of Nets' debt.The headline value of Nets is EUR7.8bn, but with an earnout component of EUR250, the headline value is closer to EUR8bn. This why, below, my deal multiple is at 21.1x, based on 2020E numbers, is somewhat larger than the ~20x that Nexi claims it the deal multiple. Note Nets went private at 19x EV LTM / EBITDA in 2018. Below I analyse the valuation implications for Nexi from this move.

Nexi SpA (NEXI IM): The Nets Purchase Is a Good Deal... I See a Rerate in Short and Longer Term