Media no image

Ingenico ramps up its transformation: acquisition of Bambora. H1 2017 Trading update.

Press Releases   •   Jul 20, 2017 11:16 EDT

  • Key milestone in the execution of Ingenico’s strategy
    • Expand its own acquiring capabilities on top of existing partnerships in order to enhance the full-service offer
    • Step up the approach of the fast growing end-to-end payment solutions market for SMBs in Europe
    • Extend the geographical exposure of the online and in-store segments
  • Accretion on Ingenico’s economics from 2018 and beyond
    • Organic growth profile enhanced by 1 to 2% per year
    • c.5% EPS accretive impact in 2018 (before synergies and PPA)
    • €30 million of run-rate synergies to be realized over 3 years leading to an EPS accretive impact of c.13%

Headquartered in Stockholm, Bambora employs more than 700 people across Europe, North America and Australia. The group provides a one-stop shop offer to address both Enterprise and SMB markets. Bambora delivers in-store, mobile and online services through end-to-end payment solutions for over 110,000 merchants and enterprises globally. The backbone of its offers consists of a merchant acquiring platform and a customer centric approach relying on an in-depth expertise of full-service offering and value-added services such as fast digital onboarding or data analytics. Bambora, whose model generates more than 90% recurring revenue, reached a gross revenue of €202 million in 2016.

In the next two years, gross revenue and EBITDA are expected to grow over 20% and 30% respectively.

This acquisition represents a key milestone in the execution of Ingenico Group’s strategy towards payment services with a disruptive approach and:

  • Enriches Ingenico’s customer centric offer with complementary technological skills
  • Adds a dedicated direct-to-SMB sales’ channel to the Retail Business Unit
  • Leverages Enterprise combined portfolios with end-to-end payment solutions, including online acquiring capabilities in Europe and specific advanced functionalities for cross-border companies globally
  • Brings scalable assets with a complementary footprint and increases its online and in-store offer in the Nordics, North America and Australia through the addition of new Gateways

Expands our presence in Australia with POS managed services and full estate management offering.

Anticipating the future evolutions of commerce, Ingenico Group has, in recent years, been pursuing a strategy of expanding its offering towards integrated payment services. The acquisition of Bambora represents a key milestone in our strategic plan providing a more integrated client offering and omnichannel solutions. Coupled with the investments made in our platforms and the development of new technological features, Bambora will enhance our customer centric approach and will reinforce our online and in-store positioning through a perfect complementarity. This transaction will be additive to our growth profile and will create value for our shareholders, customers and employees. In parallel, our half-year performance enables us to reiterate our 2017 objectives.” said Philippe Lazare, Chairman and CEO of Ingenico Group.

With our one stop shop payment services, our cross border acquiring capabilities and our customers’ digital approach, Bambora fits perfectly with Ingenico’s strategic initiatives to address market evolutions and focus on merchants’ needs. The combination of our scalable end-to-end solutions with Ingenico’s assets will create great value to our customers by helping them to drive performance. I am very excited about pursuing our development alongside Ingenico and being fully involved within the integration process to offer a world class experience to our customers.” said Johan Tjärnberg, CEO of Bambora.

Bambora is an excellent example of entrepreneurial business innovation, and yet another great Swedish unicorn leveraging strong local tech capabilities to create a global digital leader. Bambora is the result of a strong vision based on deep insight into the market, followed by fast and innovative execution by the management team that I would like to thank for their dedication and exceptional work. With Ingenico Group as new owners, Bambora will be able to further leverage its technology platform and strong team within Ingenico’s footprint for even faster growth and expansion.” says Fredrik Näslund, partner, NC Advisory AB, advisor to the Nordic Capital funds.

Bambora’s top management will reinvest a meaningful part of their proceeds in Ingenico shares and will be fully involved in the development of Bambora within Ingenico.

The closing is expected to occur by the end 2017, subject to approval from the relevant regulatory and antitrust authorities, and after the consultation of the employee representative authorities.

Half-year results in line with our 2017 objectives

  • Revenue of €1,222 million
    • Up 5% on a comparable basis1
    • Up 8% on a reported basis
  • Solid performance across most regions
    • Back to positive organic growth in North America in the second quarter
    • Excluding Brazil, organic growth1 of 6% in the first half
  • Continued positive momentum in ePayments
  • EBITDA2: €244 million representing 20% of revenue
  • Objective for 2017 maintained
    • Organic growth1 c. 7%
    • EBITDA2 margin slightly above 20.6%

Key figures3

Performance in the first half 2017

In the first half of 2017, revenue totaled €1,222 million, representing an 8% increase on a reported basis, including a positive foreign exchange impact of €12 million. Total revenue included €832 million generated by the Smart Terminals and €390 million generated by Payment Services.

On a comparable basis, revenue was 5% higher than in the first half of 2016, a result that included a 3% increase in Terminals and an 11% increase in Payment Services.

Our new organizational framework is now in place. In H1, the Retail Business Unit reported a revenue of €516 million, an increase of 5% on reported figures. On a comparable basis, the increase in revenue was 3%, driven by a good performance in ePayments but impacted by a strong terminals renewal cycle that has taken place in 2016 in Europe.

The Banks and Acquirers Business Unit posted a revenue of €706 million, an increase of 10% on reported figures and including a positive foreign exchange effect of €12 million. On a comparable basis revenue increased by 7%, fueled by a strong demand in Europe and Asia despite a lack of dynamism in Brazil regarding the macroeconomic uncertainties.

Gross profit up 4%

During the first half of 2017, the adjusted gross profit reached €512 million, or 41.9% of revenue. Excluding China, the adjusted gross profit as percentage of revenue represented 43.7% of revenue, or a 10 basis points increase compared to the first half of 2016 pro forma adjusted.

The gross profit in the Terminal division grew by 5% to €385 million, or 46.3% of its revenue following a less favorable geographical mix and components’ shortages in China.

Within the Payment Services division, the gross margin rate fell by 290 basis points to 32.4% of its revenue, resulting from the current investments in our platforms and an evolution of our client and geographical mix.

Operating expenses contained over the semester

In the first half of 2017, the adjusted operating costs were €291 million, representing 23.8% of revenue compared to 25.1% in the first half of 2016. As discussed last February, the investments in our platforms tend to decrease all along the year as the forecasted plan has been achieved.

EBITDA margin and profit from operating activities

EBITDA was €244 million in the first half of 2017, equal to 20.0% of revenue compared to 21.5% in the first half of 2016. We remain confident with our full year EBITDA margin objective as H2 2017 will benefit from a better geographical mix and operating improvements.

After accounting for Purchase Price Allocation and other operating income and expenses, profit from operations totaled €191 million, compared with €184 million in the first half of 2016. The Group’s operating margin was equal to 15.7% of revenue, versus 16.2% in the first half of 2016.

As announced in February 2017, our new organization will enable us to optimize our operating model through higher end-to-end industrial and R&D efficiency, sharing modules across platforms and leveraging scale to optimize our costs.

In that purpose, we have initiated an operational excellence plan with the involvement and commitment of all local managers. We expect cost efficiencies to reach between €20 and €25 million on a full year basis through a continuous improvement plan and efficiency in our procurements. Our operational excellence plan will be rolled out over time.

Free cash-flow

During the first half of 2017, Ingenico Group’s operations generated a free cash flow of €69 million, 8% higher than the prior year leading to an FCF/EBITDA ratio of 28.1%, an increase of 190 basis points. This improvement mainly resulted from the lower tax paid during the semester that has benefited from the geographical mix evolution. In parallel, the Group continued to invest in its activities with CAPEX amounting to €38 million.

Outlook

Ingenico Group confirms its 2017 objectives:

  • A revenue growth around 7% on a comparable basis
  • A slight increase of the EBITDA margin compared to 2016 (20.6%)

Bambora helps businesses grow. With a suite of simple payment products, it’s easy to keep track of daily transactions both online, in-store, or in-app. Founded in 2015, Bambora has been built with assets having significant experience in the payments industry. Now an international presence, with more than 700 employees, customers in 70 markets, and 300 commercial partners, Bambora processes €55 billion per year. For more information, please visit www.bambora.com

Ingenico Group, (Euronext: FR0000125346 - ING), global leader in seamless payment, today announced the acquisition of Bambora, a fast growing player in payment services, from Nordic Capital for a total consideration of €1.5 billion. The transaction will be fully financed through available cash and debt. The financial leverage will remain below 3x EBITDA leaving Ingenico flexibility for future M&A.

Read more »
Mq7vrbxqfgkei53cfvcb

Bambora acquires Swedish technology for global e-commerce

Press Releases   •   May 12, 2017 15:39 EDT

Bambora strengthens its position in e-commerce and digital payments through the acquisition of Devcode Payment. The integration of Devcode Payment means that Bambora can now provide global companies with a secure, flexible and innovative platform for payments worldwide with more than 250 local payment methods. The acquisition is an important cornerstone for international e-commerce.

Yvd9lvrml1eunvgqa3wc

Bambora lands in North America

Press Releases   •   May 10, 2017 13:55 EDT

Beanstream, a provider of multi-channel payment solutions, today completes its evolution into Bambora.

Ruiw9bezpalndjknach3

Victoria’s Beanstream payments firm to become Bambora’s N.A. hub

News   •   May 10, 2017 13:45 EDT

A name change to Bambora will reflect its new role as one of a group of four worldwide online payments facilitators.

Media no image

Finnish startup company being integrated into the global payment group Bambora

Press Releases   •   Oct 15, 2015 05:21 EDT

Swedish Bambora was started up only two years ago and has rapidly become a significant player in the payments market. With their specialist expertise in e-commerce solutions, Finnish Maksukaista has become a part of a global initiative that aims to simplify the way small and medium-sized businesses can receive payments.

- Imagine a restaurant that serves only one ingredient. The customer is forced to go to one restaurant to get potatoes, another to get steak, and a third for the sauce. This is what our industry looks like. What Bambora does differently is to offer the full menu, allowing customers to choose themselves what they want on their plate. Maksukaista is a very fascinating company, one that we have had our eyes on and one that shares the same vision as Bambora. With our broad expertise within the field of payments and their specialist expertise in e-commerce, we have become an even stronger team, observes Johan Tjärnberg, CEO of Bambora

Maksukaista was launched in 2013 by the company Paybyway Oy, which was formed last year by a team of IT and finance experts. One of their insights about the market was that the offering of mobile and online payments for small and medium-sized business should be improved to help the businesses to grow and new businesses to be launched. The key idea from beginning was to offer a simple payment process to help the businesses to increase their sales. Maksukaista also realised that too much time is spent on administration. Right then Maksukaista was born out of a vision to offering whole payment chain and enterprise scale payment services from off-the-shelf, thus making life easier for small and medium-sized businesses.

- Small businesses – such as an online shop or a restaurant – are often operated by enthusiasts who are forced into solving everything by themselves. However, a merchant should not have to spend time thinking about what they are going to get paid; it should simply just happen. We are constantly striving to simplify our services. Coupled with Bambora, we’ve become stronger, which makes our customers feel safe and secure, focusing on what they’re passionate about, and increasing their sales”, says Ville Vähä-Nuuja at Maksukaista

Bambora is a start-up company that has grown extremely rapidly and now has operations in Europe, Australia, New Zealand and North America. In about two years, the organisation has grown to 520 employees with offices in 7 countries, and an annual transactional turnover of SEK 350 billion. When Maksukaista becomes a part of Bambora, this is because together the companies will strengthen their offering in Finland of customised payment solutions: offline, online and mobile.

For further information, please contact:

Mika Arponen, mika.arponen@bambora.com

Ville Vähä-Nuuja, ville.vaha-nuuja@paybyway.com

Bambora is owned by Nordic Capital Fund VIII and consists of a consolidation of the companies Samport, MPS, ePay, DK Online, Key Corp and Euroline.

​Swedish Bambora was started up only two years ago and has rapidly become a significant player in the payments market. With their specialist expertise in e-commerce solutions, Finnish Maksukaista has become a part of a global initiative that aims to simplify the way small and medium-sized businesses can receive payments.

Read more »
Media no image

New Swedish FinTech Innovator Bambora Group to Expand through Acquisition in the North American Market

Press Releases   •   Sep 18, 2015 04:00 EDT

STOCKHOLM – Sept. 18, 2015 – The Swedish fintech innovator, Bambora Group, announced the signing of a definitive agreement to acquire Beanstream Internet Commerce, Inc. Bambora plans to leverage this new business combination to enter the North American market. Bambora’s ambition is to become a global one-stop-shop with the same unique offer, services and customer experience regardless of where their clients are located. The goal? To become one of the industry’s most innovative and growth-focused payment companies globally.

Launched in May this year, the Bambora Group already handles more than $50 billion in transaction value a year, of which more than 70 percent is online. Bambora has 520 employees with offices in seven countries. The group consists of industry innovators, engineers, financial advisors, marketers and digital developers who all share a common goal – simplifying trade between people, in-store as well as online and using mobile devices.

Bambora’s plan to acquire Beanstream – a provider of card-not-present, payment processing, risk management and authentication services – is a result of its ambition to become a global player. Beanstream’s long history and exceptional reputation in the Canadian small to mid-sized business market, its proven platform and its momentum in the U.S., complement Bambora’s current strategy to efficiently enter the North American market.

Subject to closing conditions, the transaction is expected to be finalized in September 2015. The terms of the transaction were not disclosed.

“We are acquiring the best and most innovative startups in the payments market that share our values and strong belief in simplifying trade between people on a global level. Beanstream is a perfect fit for our strategy. Together we will be able to create great products for the North American market and fuel new innovations,” said Johan Tjärnberg, CEO of Bambora Group.

“Beanstream at its core is an entrepreneurial organization, which closely complements Bambora’s culture. The opportunity to work with some of the best and brightest thought leaders in the industry and collaborate on innovative technology that we can bring to North America is extraordinarily exciting for our team,” said Craig Thomson, president of Beanstream.

Bambora Group consists of a number of payment companies – including Euroline, Keycorp, dSAFE, Samport, IP Payments, MPS, DK Online and ePay. Together Bambora Group represents one of the largest online payments providers in Sweden. With business in Europe, Australia and New Zealand, the group offers all-in-one payment services for retailers and online merchants.

About Beanstream

Since 2000, Beanstream has provided payment, risk management and authentication solutions to some of North America’s leading companies and institutions.

Beanstream has forged relationships with major financial institutions, built a network of more than 700 partners and 18,000 merchants, and provides white label solutions for First Data Canada, TD Bank and Sage Payroll. Customers include online and brick-and-mortar merchants, governments, and financial and higher education institutions. Beanstream is located in Victoria, British Columbia, Canada.

About Bambora

Bambora Group is one of the fastest growing providers of online payment transactions with business in Europe, Australia, New Zealand and North America. Bambora consists of a consolidation of innovative payment technology companies, including Samport, MPS, ePay, DK Online, Keycorp, dSAFE, Euroline and IP Payments. The group processes more than $50 billion in transaction value a year, of which more than 70 percent is online. Bambora has 520 employees with offices in seven countries. The Bambora Group is owned by Nordic Capital Fund VIII.

STOCKHOLM – Sept. 18, 2015 – The Swedish fintech innovator, Bambora Group, announced the signing of a definitive agreement to acquire Beanstream Internet Commerce, Inc. Bambora plans to leverage this new business combination to enter the North American market.

Read more »
Media no image

Swedish payments group expands through acquisition in Asia

Press Releases   •   Aug 07, 2015 04:01 EDT

The Swedish payments group Bambora continues its international expansion through the acquisition of the Australian-owned payments company IP Payments. IP Payments provides innovative payment solutions that facilitate e-commerce and mobile commerce for businesses and shops through unique cloud-based services. The acquisition is part of Bambora’s expansion in the Asia Pacific region and an opportunity for the payments group to strengthen its offering in e-commerce.

IP Payments is the second acquisition for Bambora in the Asia Pacific region after Keycorp which was acquired in May 2014.

“The Australian and New Zealand payment markets share key similarities to Bambora’s Northern European home, which make this region particularly attractive to the group. The market leading online capabilities of IP Payments coupled with Keycorp’s multi-vendor payment services will see Bambora take a strong hold across in-store, on-line and the emerging mobile payment channels,” says Johan Tjärnberg, Chief Executive Officer Bambora Group.

IP Payments has quickly established itself as a leading provider of innovative payment solutions that simplifying e-commerce and let retailers grow their digital business in Australia.

For the Nordic market, means Bambora’s acquisition of IP Payments to further strengthen its offer in e- and mobile-commerce, which helps small and large retailers to develop their digital business, both online and mobile.

About IP Payments

IP Payments was founded in 2004 and delivers cloud-based payment solutions for online trading such as payment gateways, PCI compliance and tokenization, accounts receivable automation and recurring bill payments solutions.

Bambora is owned by Nordic Capital Fund VIII and consists of a consolidation of the companies Samport, MPS, ePay, DK Online, Keycorp, Euroline and IP Payments, which together handle over 3 billion transactions, of which about 50 percent are online. This makes Bambora the largest in Sweden in payment transactions online. Bambora has over 450 employees in five countries.

The Swedish payments group Bambora continues its international expansion through the acquisition of the Australian-owned payments company IP Payments. IP Payments provides innovative payment solutions that facilitate e-commerce and mobile commerce for businesses and shops through unique cloud-based services.

Read more »
Media no image

New Nordic Payment Group Challenges Intricate Industry

Press Releases   •   May 21, 2015 05:00 EDT

Today Bambora is launched– a Nordic payment group that simplifies for retailers and can contribute to increased sales. Bambora consists of some of the payment industry’s prime innovators, engineers, financial advisors, marketeers and digital developers with the common goal of simplifying trade between people, in stores as well as online. The head office is located in Stockholm, but the Group’s ambition is global.

– The Nordics is like a Silicon Valley for payment solutions. We have followed and contributed to the development of this during our more than 10 years in the industry. But we have also seen a number of exorbitant obstacles that still aren’t solved and complicate trade for above all small and medium sized businesses. We know for example that 40 percent of the Nordic retailers do not know what they actually pay in fees for card purchases or how the agreements are constructed, we need to change this, says Johan Tjärnberg, CEO at Bambora.

Bambora was created from the companies formerly known as Euroline, ePay, MPS, DK Online, Key Corp and Samport, that combined handle more than three billion transactions, of which 50 percent online. This makes Bambora the largest in Sweden for online payment transactions. Thanks to this merger of competences, Bambora can offer everything under one roof. For retailers, this means for example that support and advising is now handled by one contact, instead of several as previously, which will considerably reduce the time that retailers spend on administration today.

In a first phase, Bambora launches the payment service ONE with a simple price that is easy to understand, for customers being everything from the small flower shop on the corner to the larger Nordic coffee chain. Bambora’s new service also implies more efficiency when it comes to helping a retailer to set up a functioning system in stores or online, from a norm of two weeks to now a maximum of a couple of days.

– Intricacy is our largest enemy. Our key objective right now is therefore to simplify for as many retailers as possible by removing bureaucracy and administration so they can focus on their business. This will benefit retailers, and I also believe and hope that it will benefit Sweden as a whole since trade is an important engine for growth in the larger economy, Johan Tjärnberg continues.

As add on services, the retailers will be able to choose from different loyalty solutions such as for example mobile app services. Bambora is also developing new smart innovations for retailers to grow and develop their business, both in the psychical store, online and for the mobile phone.

Bambora will first be launched in the Nordics and have its head office in Stockholm. For more information see www.bambora.com 

Bambora is owned by Nordic Capital Fund VIII and consists of a consolidation of the companies Samport, MPS, ePay, DK Online, Key Corp and Euroline.

Today Bambora is launched– a Nordic payment group that simplifies for retailers and can contribute to increased sales. Bambora consists of some of the payment industry’s prime innovators, engineers, financial advisors, marketeers and digital developers with the common goal of simplifying trade between people, in stores as well as online.

Read more »

About Bambora

If it doesn’t change the world, it’s not worth doing.

Every second, there’s a commercial success waiting to happen. Let it be yours. And let us help you do it. Business ideas need to turn into money. Quickly. You want to please customers with fast and easy transactions, whether running a florists or driving a large retail chain. It’s about making technology so sophisticated that life becomes a lot simpler and secure. For you. And your customers.

We´re Bambora. Talk to us about your commercial ideas. And your payment needs. We’ll put out talent, experience and capabilities at your disposal to ensure that you get the most effective and convenient all-in-one solutions.

To us, it’s all about you. The rest? It’s really simple.

Address

  • Bambora
  • #200-1803 Douglas Stree
  • BC V8T 5C Victoria
  • Canada

Links