EVO Payments International, a US-based payment service provider, has entered into an agreement with Poland’s PKO Bank Polski (BP) to acquire 66% stake in its merchant acquiring business subsidiary, eService, for $113.5m.
Under the proposed transaction, both the firms will enter into a 20-year strategic alliance and will work together to expand eService’s business within Europe.
eService has more than 80,000 point-of-sale (POS) terminals in Poland with over 35% of market share in terms of transaction count and volume.
The alliance with EVO will allow PKO to increase its capital ratios, while eService will leverage EVO’s experience as a payment processing partner.
EVO Payments International 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."
The transaction will also allow both the parties to introduce new products and services for eService’s current and future merchant customers.
PKO Bank Polski CEO Zbigniew Jagie??o said with this strategic alliance they are executing their strategy for eService.
"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," Jagie??o added.
The deal, which is subject to regulatory approvals, is expected to close by the end of 2013.