Fitch Ratings-Milan-01 March 2023: Nexi S.p.A.’s (BB/Stable) acquisition of Banco de Sabadell, S.A.’s (BBB-/Stable) merchant acquiring business is strategically sound and neutral to the rating, Fitch Ratings says. The target operations engage in Nexi’s core business. The acquisition, expected to close by 4Q23, will be funded by cash on balance sheet and will not affect Nexi’s gross leverage profile. A successful integration could lead to a minor de-leveraging, led by EBITDA margin accretions. The funding of the acquisition, by cash on balance sheet, will not significantly affect Nexi’s financial risk profile. Fitch’s sensitivities for Nexi are based on gross leverage and gross debt coverage metrics. They will therefore not be altered by the deal, while Nexi’s liquidity remains adequate for the rating. Nexi will acquire 80% of the business on a debt-free basis for EUR280 million. This is equivalent to 11.5x company-calculated expected 2023 EBITDA. The remaining 20% will be subject to a deferred sum. High growth prospects in Spain for merchant acquiring could increase Nexi’s profitability over the next 12 to 18 months, mildly improving leverage. However, this remains an upside to our base case forecasts, due to integration risks. This applies in particular to Spain, where the […]
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