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Private equity firm Advent International has agreed to acquire myPOS as part of its latest push into the digital payments market.
Advent acquires myPOS for €500 million
Advent will acquire the provider of payments services for small merchants through a new vehicle called Circle that it plans to expand through further acquisitions in the fast-growing sector.
The transaction, which is subject to regulatory approvals, is expected to close by the end of the year.
The move comes despite investors becoming more cautious about the payments sector, with stretched valuations coming under pressure from higher interest rates and global funding of fintech deals dropping sharply following a boom during the COVID-19 pandemic.
Advent, which manages $92 billion in assets, is behind some of Europe’s largest payments buyouts, including Vantiv, Worldpay, XPLOR, Planet and Nexi.
The acquisition is expected to value myPOS at around €500 million ($542.15 million), people familiar with the matter told Reuters.
The payments sector has had a run of transactions recently.
SumUp said last year it had raised €590 million in a funding round led by Bain Capital Tech Opportunities. JP Morgan last year also bought a stake in payments fintech Viva Wallet.
Established in 2012, myPOS works with 170,000 small businesses across transport, retail and hospitality among other sectors in continental Europe, providing payments processing tools.
It also provides merchants with a business account and card, as well as lending and other payment services.
With 500 employees across Europe, it is one of a small group of fast-growing companies, including PayPal Zettle and SumUp, which focus on customers that traditional banks have missed out on.
Smaller merchants are finding solutions elsewhere because they cannot afford the older card reader machines provided by banks.
The company is targeting a revenue run rate of €100 million this year. Group revenue jumped by 39% to £60.1 million in 2022, as pre-tax profits fell from 10% to £5.3 million.
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