Advent International’s Latest Move to Aquire MyPOS for €500m
Private Equity Giant Advent Expands its Footprint in the Digital Payments Space
In a significant development, Advent International, a renowned private equity firm with assets totalling a staggering $92 billion, has made a strategic move to acquire myPOS, a prominent player in the digital payments realm. This acquisition is part of Advent’s ambitious foray into the thriving digital payments sector, marking a milestone in its portfolio expansion.
Advent’s Vision and Strategy
Advent’s acquisition of myPOS is orchestrated through a newly established entity named AI Circle Bidco, or simply Circle, reflecting their commitment to nurturing and growing their investments in digital payments. This bold move underlines their determination to establish a robust presence in this dynamic market. The transaction is currently awaiting regulatory approvals and is anticipated to be finalised by the end of the year.
The Changing Landscape of Payments
Despite the payment sector’s increasing volatility, characterised by soaring valuations and fluctuating interest rates, Advent International remains undeterred in pursuing this strategic acquisition. This resilience is built upon a track record of successful payment buyouts in Europe, including names like Vantiv, Worldpay, XPLOR, Planet, and Nexi. The acquisition values myPOS at a substantial €500 million, demonstrating Advent’s commitment to their vision.
Understanding myPOS
myPOS, founded in 2012 and headquartered in London, is pivotal in enabling payments for small businesses across various continental European sectors, including transportation, retail, and hospitality. The company offers a comprehensive suite of payment processing tools in addition to business accounts, cards, lending services, and other payment solutions. With over 500 professionals across Europe, myPOS is one of the few high-growth companies dedicated to serving customers that conventional banks often overlook.
Creating Opportunities for Small Merchants
Smaller merchants have been increasingly seeking alternatives to traditional banks, primarily due to the prohibitive costs associated with the outdated card reader machines offered by these institutions. Companies like myPOS have emerged as saviours for such businesses by providing faster onboarding, cutting-edge technology, and cost-effective solutions. This transition has led to a surge in their popularity.
Leadership Transition
As part of this acquisition, Christo Georgiev, the founder of myPOS, will be stepping down from his role in the company. However, the existing management team will continue actively involved and invested in the business, ensuring a seamless transition.
Ambitious Goals Ahead
myPOS has set its sights on achieving a revenue run rate of €100 million this year, reflecting its ongoing growth trajectory. In 2022, the company witnessed a remarkable 39% increase in group revenue, reaching £60.1 million, despite pre-tax profits experiencing a 10% dip, settling at £5.3 million.
A Promising Future
As Advent International adds myPOS to its portfolio, the stage is set for a transformative journey into the digital payments landscape. With a strategic vision and a commitment to serving underserved small merchants, Advent aims to create a formidable platform that caters to the evolving needs of the European payments market.
In the face of a changing financial landscape, this acquisition exemplifies Advent International’s resilience and foresight as they take a bold step into the future of digital payments.
