Swedbank acquires PayEx
Swedbank has acquired payment provider PayEx as it seeks to enter new markets and add more services.
PayEx is a privately-owned group comprising several companies in Sweden, Norway, Denmark and Finland. It offers payment solutions for internet, mobile and physical commerce and administrative services within billing, account management and debt collection. The company also offers financial services such as factoring, instalment and loans. PayEx will be a fully owned subsidiary of Swedbank, with headquarters in Visby, Sweden.
Birgitte Bonnesen, president and CEO at Swedbank, says within PayEx there is “great competence and knowledge”.
The bank states that the market for payment solutions has undergone “major changes” in recent years by greatly increased on-line purchases and development of invoicing solutions.
For 2016, the bank says PayEx’s total operating income amounted to SEK 541 million ($61 million), total operating costs to SEK 460 million ($51.9 million) and profit before tax to SEK 78 million ($8.8 million). At the end of 2016, PayEx’s total risk exposure amount was SEK 1.7 billion ($191.9 million).
Swedbank adds that the acquisition will have a “minor negative impact” on its common equity tier 1 ratio. More information about the financial effects for Swedbank will be published when the acquisition is closed.
The acquisition is financed with Swedbank’s internal resources and is subject to customary approvals from regulatory authorities, including the Swedish Financial Supervisory Authority and the Swedish Competition Authority.
PayEx was founded 1972 by Max Hansson, who has owned the company since then. The company has more than 10 000 customers and approximately 500 employees. According to the firm, it processes more than SEK 250 billion ($28.2 billion) per year in its home markets.