French payment services company Ingenico and Sagem Securite have finalized the merger of their electronic payment solutions businesses. The new group expects to generate E25m in additional EBITDA from 2010, due to cost savings in procurement.
Under the terms of the deal, Ingenico will acquire the payment terminal activities operated by Sagem Monetel and Sagem Denmark, the subsidiaries of Sagem. In return, Sagem will take a 25% holding in Ingenico.
Reuters has reported that both companies expect the loss of potential revenue due to overlap in the areas of operation between them to be limited to less than 5%. Also the in the first year, the effect of the transaction should be neutral on the EPS and between 5-10% in 2009.
In October 2006, Ingenico acquired a French terminal manufacturer Moneyline to expand its presence in Europe.
Source: ComputerWire daily updates