AIB Group plc has formed a new joint venture with First Data Corporation (FDC) to acquire 95.9% of Payzone, an Irish fintech payments business.
The Joint Venture, which will be 75% owned by AIB and 25% owned by FDC, will acquire the ownership interest in Payzone from existing shareholders including Carlyle Cardinal Ireland Fund for an enterprise value of up to €100 million.
Payzone is Ireland’s largest consumer payments network. The company has a strong track record of delivering innovation and new product development and has a suite of online and mobile payment solutions servicing in excess of 300,000 registered consumers in over 7,000 retail outlets throughout Ireland.
AIB says the proposed acquisition is consistent with AIB’s strategy to make selective investments to evolve its customer service and product proposition in its core market.
It will bring significant fintech capability to AIB and will further strengthen its digital agenda in a post PSD2/Open Banking economy. The bank says the expected return on investment comfortably exceeds AIB’s cost of capital.
Speaking this week, Chief Executive Officer of AIB, Colin Hunt said, "For AIB, this transaction means acquiring significant fintech capability and Payzone’s substantial payments footprint in Ireland. This will allow AIB to continue to evolve and enhance our customer offering, enable us to pioneer digital ecosystem products and services and represents growth potential. We are delighted to partner again with First Data Corporation in setting up this new joint venture and look forward to working with Payzone management to further build on their success."