Advent to Purchase myPOS By The End Of The Year
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Advent International has signed a deal to acquire myPOS, a UK-based payment service provider. This buyout seeks to help Advent push its focus on enabling digital payments and expanding its presence in the sector.
Advent has set up a fund to acquire myPOS, according to Reuters. It will acquire the company using Circle, a new fund for the company that Advent will acquire using more acquisitions in the fast-growing digital payments industry.
Advent to Purchase myPOS
Fabio Cali, the director of Advent International, told Reuters that the buyout deal currently awaits regulatory approval. Once the approval is granted, the deal will close by the end of the year.
This buyout deal comes despite investors being more cautious about the digital payments industry. A drop in valuation comes amid pressure posed by higher interest rates. Several central banks across Europe have hiked interest rates this year to tame inflation levels that have been skyrocketing.
Moreover, since the effects of the COVID-19 pandemic on the economy, VC funding has dropped significantly. The global fintech funding has fallen drastically this year, according to a KPMG report.
Despite funding drying up, leading financial firms are interested in the digital payments sector. Last year, SumUp, a digital payments firm, raised €590 million in a funding round led by Bain Capital Tech Opportunities. JPMorgan also acquired a stake in Viva Wallet in 2022.
Advent is a leading fund manager in Europe. The company has $92 billion in assets and is also behind the buyouts of leading payment firms across Europe, such as Worldpay, Planet, Vantiv, Nexi, and XPLOR.
myPOS Has An Expected Valuation Of €500M
myPOS is expected to have a valuation of €500 million during this buyout deal, worth around $542 million.
myPOS was founded in 2012, and it works with 170,000 small businesses globally in areas such as hospitality, retail, and transport. It also gives merchants access to a payment card, business account, lending, and payment services.
While speaking to Reuters, Cali likened myPOS to PayPal and SumUp, saying the company targeted customers that traditional banks cannot access. He noted that with myPOS, customers can enjoy a fast onboarding process, better technology, and low costs.
Besides this buyout deal, the founder of myPOS, Christo Georgiev, will exit the business. The company’s management will be retained to continue with the management of the business.
