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GILD advised Estonian banks in the sale of PKK, Estonian national processor of card transactions
GILD Bankers advised Hansabank (Swedbank), SEB and Danske Bank A/S Estonian Branch (Sampo Bank) in the sale of Pankade Kaardikeskus (PKK), the national processor of card transactions in Estonia. PKK was acquired by Northern European Transaction Services (NETS), one of the leading European processors of card transactions representing primarily acquirers in the Nordic countries.
GILD Bankers partner Heikki Källu says that the sale of the national processor represents the current pan-European consolidation trend in the industry: „In recent years a number of similar deals have taken place. For example Norwegian group EDB bought the Swedish card processing company CEKAB and US origin First Data International who also has a presence in Latvia and Lithuania acquired POLCARD, the largest processor in Poland. In addition several mergers have occured, such as VOCA and LINK in the United Kingdom and clearing service provider SIA merging with processor SBB in Italy. One of the drivers of this consolidation in Europe is the creation of SEPA (Single Euro Payments Area) that is planned to be launched on a broader scale in 2010. The main goal of SEPA is to allow payment transactions in the eurozone to become as smooth and efficient as they currently are in the domestic markets.”
No changes are in plan with the day to day operations of PKK following the NETS acquisition. The key business in Estonia will continue to be providing services to the banks operating in Estonia.
PKK was established in 1993 when Estonian banks began issuing payment cards. PKK today focuses on providing efficient support services to electronic banking. In 2007 the revenue of PKK was EUR 4.3 mln and profit EUR 1.5 mln, whereas in comparison to 2006 the profit grew 23%. The NETS alliance is one of the leading European processors of card transactions primarily on behalf of acquirers in the Nordic countries.
NETS delivers cost effective solutions, compliant with all international standards and requirements, as well as relevant international and national transaction formats. NETS is equally owned by BBS AS based in Norway and PBS A/S based in Denmark.
For further information, please contact:
Heikki Källu
GILD Bankers Partner
heikki.kallu(at)gildbankers.com
Kadri Kütt
GILD Bankers Communication Manager
kadri.kytt(at)gildbankers.com