Eurazeo-backed Planet to explore M&A in 12 to 18 months
08 NOV 2018
Eurazeo [EPA:RF] -owned payments processor Planet will consider acquiring payments businesses in the next 12 to 18 months, chief executive Patrick Waldron told this news service.
Planet, which also processes value-added-tax (VAT) refunds, is amid a rebranding process, changing from Fintrax Group, having bought Planet Payment in 2017.
The Ireland-based company will not act immediately as it adjusts to its new brand and business structure, “embedding current growth”, Waldron said. However, in 12 to 18 months it may turn to M&A to add to its payments business, he said.
Planet has no in-house M&A advisors and will award mandates on a case-by-case basis, he said.
Planet will make acquisitions to balance the size of its payments business with that of its tax-refund business, he said. Only three years ago, 85% of the company’s revenues were on the tax-refund side, he said, but the split is now approaching 60% tax refunds to 40% payments. Planet had EUR 268m in revenues in 2017, according to Eurazeo’s website.
Future transactions are likely to be beyond Europe, where digital payment systems remain less established, he said.
As Fintrax, the company acquired e-Taxfree Nordic in 2016, and CubeRefund and GB TaxFree in 2017, before its GBP 160m (EUR 184m) takeover of Planet Payment. The size of Planet’s future acquisitions depends on future performance, Waldron said, and it will turn to a mix of debt and equity to finance M&A.
Planet has no in-house M&A advisors and will award mandates on a case-by-case basis, he said.