BARUERI, Brazil, July 2, 2012 /PRNewswire/ -- Cielo S.A.
(BM&FBOVESPA: CIEL3 / OTC: CIOXY), Latin America's leader in electronic payment
solutions has entered into a definitive agreement to acquire
Merchant e-Solutions ("MeS"), a U.S.-based provider of full-service
global payment solutions. Founded in 2000, MeS has the latest
generation technology platform, developed specifically for the
acquiring business, which has allowed the company to differentiate
itself in the U.S. market. The acquisition of MeS and its
best-in-class payment platform reinforces Cielo's strategy of
offering innovative solutions and services to its customers and
partners in Brazil.
MeS offers a comprehensive suite of solutions in traditional
merchant acquiring as well as e-commerce and mobile payments,
currently processing more than US$ 14
billion in transactions annually for more than 70,000
affiliated retailers, in partnership with over 250 financial
institutions. For the last twelve months ended May 31st, 2012, MeS net revenue was US$ 124 million with an EBITDA margin of 45%.
MeS has substantial expertise and proprietary technology
tailored to serving a diverse e-commerce merchant base. E-commerce
accounted for 57% of 2012 year-to-date Net Revenue. In addition to
the outstanding performance in e-commerce, the company also offers
its customers a suite of payment solutions for mobile, recurring
payments, and B2B.
The customization of the MeS platform, given its high
scalability, efficiency and flexibility, for the Brazilian market,
will allow Cielo to offer: (a) complete end-to-end services to
merchants in both retail and e-commerce; (b) the best value
proposition to Cielo´s client base with a new suite of products and
functionalities, along with better customer service offered through
a web-based platform with features such as near-time statement
generation and reconciliation solutions, (c) improved solutions and
business tools for partner banks that will allow better integration
to their distribution channels to ensure an efficient go-to-market
strategy of their merchant acquiring value proposition, and (d) the
best offering of e-commerce payment solutions, with cutting-edge
features and functionality in the fastest growing segment of
commerce in Brazil.
The advanced technology developed by MeS will provide Cielo with
greater process automation (back office), flexibility and agility
in developing new products and, consequently, will enable a lower
time-to-market for new products and services. In addition, with the
acquisition of MeS, Cielo gains a physical presence in Silicon
Valley, a hotbed of technological innovation and currently the
epicenter of the digital revolution in payments.
Cielo has agreed to pay a consideration of US$ 670 million, to be paid at closing of the
transaction subject to the satisfaction of certain closing
conditions.
Cielo was advised on the transaction by Goldman, Sachs & Co.
Merchant e-Solutions was advised by JP Morgan.
About Cielo
Cielo SA (Bovespa: CIEL3 | OTC: CIOXY) is the Latin America's leader in electronic payment
solutions. It is responsible for acquiring merchants and for the
capture, transmission, processing and settlement of transactions
made with credit cards and debit cards in Brazil. Through thousands of simultaneous and
reliable operations, Cielo connects banks, card companies and
merchants to power businesses and boost the economy.
The high technology applied in Cielo's network allows the
company to operate with an availability rate of 99.995% over the
year and 100% availability in major retail dates. With more than
1.2 million active establishments (considered those that had
transactions effected at the terminals of Cielo in the last 60
days), Cielo covers 99% of Brazilian territory.
For the last twelve months ended March
31st, 2012, Cielo's transactional financial volume under the
accounting criterion totaled R$ 337.7
billion. It captured 4.8 billion transactions in the same
period.
More information about Cielo
FSB Comunicacoes – 55 (11) 3165-9596
Paulo Sadalla – 55 (11)
3165-9562 | paulo.sadalla@fsb.com.br
Mariana Ribeiro – 55 (11)
3165-9705 | mariana.ribeiro@fsb.com.br
SOURCE Cielo S.A.