Acquisition of ICP and majority investment at Cardtech strengthen network provider role
Eschborn, 2 May 2016. Concardis GmbH, one of Europe's leading payment service providers, continues to work through its shopping list. Following the takeover of REA Card Bargeldlose Zahlungssysteme GmbH in Austria and TelePay in Munich, the company has now acquired ICP International Cash Processing GmbH, a technical network provider for card-based payments. The takeover is still subject to approval from the German competition authorities. Clearance will pave the way for the full integration of ICP into Concardis GmbH. At the same time as acquiring ICP, the company from Eschborn increased its stake in Cardtech Card & POS Service GmbH from Cologne to around 70%, thus taking industrial control of this technical network operator too. This investment is also subject to approval by the German competition authorities. With these two transactions, Concardis strengthens its position in network operations and creates the conditions for the further expansion of its service portfolio.
The acquisition of ICP and the integration of its service portfolio into the Concardis offering is the next logical step in the implementation of its corporate strategy. Its declared aim is to strengthen its position at the traditional and virtual point of sale (POS) and to offer one-stop shopping for all the services in the payment value chain. Today the Concardis associates Cardtech and WEAT process around 400 million transactions per year, as well as other network operations, through 55,000 terminals. With the acquisition of ICP, Concardis will take responsibility for an additional 36,000 payment terminals and 85 million transactions a year.
‘The payment market is currently in an intense consolidation phase and that is set to continue. We intend to play an active role in this consolidation and expand our market position. Network operations are an important pillar of our strategy. They supplement the position we have built in the acquiring market and give us the opportunity to generate further revenue and earnings growth and to increase the value of the company, both by means of synergy and with new products and services,’ said Marcus W. Mosen, CEO of Concardis, commenting on the latest transactions.
In addition to the network operations and its own acquiring portfolio, ICP is one of the few companies in Germany to be licensed as an electronic money institution. This licence is required for providing digital wallet solutions or prepaid cards. Concardis intends to use the new product design and solutions development opportunities to complete its service portfolio. ‘ICP gives us new options. With these two companies, ICP and Cardtech, we have the expertise, the technology and the experience to keep expanding our market share as a payment service provider in German-speaking Europe,’ said Mosen.
Once the German competition authorities have made their decision, the existing customers and the 50 employees of ICP will be integrated into Concardis GmbH.