EVO Payments International recently announced its intent to purchase a 66 percent stake in eService, PKO Bank Polski’s merchant acquiring business, in a transaction valued at $113.5 million.
In addition to the acquisition, EVO and PKO will establish a 20-year partnership under which the companies will work together to expand eService within Europe. The deal is subject to regulatory approval and is expected to close by the end of the year.
“We are delighted to be partnering with PKO Bank Polski, a leading financial institution in the region, with an established history and strong dedication to provide innovative solutions,” EVO CEO James G. Kelly said. “This alliance fits perfectly with our strategy of expanding our global reach and strengthening our position in an important European market. We have been very impressed with the eService team and will continue to support the team in growing the market and the region by bringing our proven sales solutions to expand the market. We intend on making our existing products available to eService, while leveraging the remarkable eService infrastructure.”
eService, which has over 35 percent of market share in terms of volume and transaction count, has a network of more than 80,000 POS terminals in Poland. The company also plays a crucial role in the development of IKO, a mobile banking solution offered by PKO.
Acquisitions in Poland and Central Europe are part of PKO’s strategy to earn a competitive advantage and increase its shareholder value.
“With this strategic alliance we are executing our strategy for eService,” PKO CEO Zbigniev Jagiello, said. “The company has achieved a leading position in the Polish market, is highly profitable and well positioned to expand internationally. Now, with a prominent and one of the most dynamically developing payments service providers in the world, we can mutually focus on further developing eService as a leading merchant acquirer in Poland, while expanding throughout Central and Eastern Europe.”