Payments network Ingenico is acquiring Indian electronic payments provider TechProcess.
The financial terms of the deal are undisclosed but Ingenico will take 100% of the firm from the global and Indian investors that make up its current shareholders.
The deal is expected to close in Q1 of this year.
Founded in 2000, Mumbai-based TechProcess counts approximately 600 employees across 40 locations around India.
Its offerings include an online payments gateway, bill payments and mobile payments that are built upon its network of connections with regional banks.
Electronic payments are hotly tipped for growth over the coming years as, while 90% of retail purchases in the region are currently made with cash, the government’s recent demonetisation initiative is expected to push users towards digital payments.
Ingenico is already present in the Indian market with around a 50% share of the terminal market.
The acquisition is intended to help it expand its footprint as well as offer cross-border capabilities.
Ingenico’s CEO and chairman Philippe Lazare said: “Based on its already leading position in terminal market, Ingenico Group is making, with the acquisition of TechProcess, a major step in India, the fastest growing country in Asia.
“The combination of our assets places us in a unique position to benefit from India’s shift towards electronic payment transactions and to strengthen our leadership in Indian instore and online payment acceptance.”
TechProcess’ CEO Kumar Karpe said: “We are very excited and looking forward to being part of Ingenico Group.
“Their leading position in payment industry will help us accelerate our development and allow us to lead the offline-online convergence in India.”
Avendus Capital served as the exclusive financial advisor to TechProcess’ shareholders while Goodwin Procter served as international legal counsel and BMR Associates served as Indian tax advisor and advised on Indian law.
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