Nexi in talks to offload €800 million in assets, shares rise

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Nexi in talks to offload €800 million in assets, shares rise
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MILAN - Nexi (BIT: NEXII ) SpA, a leading Italian digital payment company, is reportedly in discussions to divest approximately €800 million ($858 million) of non-core assets. The potential buyer is F2i SGR SpA, an investment fund with over €7 billion in assets under management and support from Italian public entities. The assets in question are part of Nexi's DBS digital solutions unit, which offers services like clearing and digital corporate banking.

In parallel negotiations, Nexi is considering selling its ATM network dedicated to instant payments and bank transfers, valued at roughly €100 million. This news has positively impacted the company's stock, with a 4.3% increase in share price during Milan trading today.

Under the leadership of CEO Paolo Bertoluzzo, Nexi has been strategically expanding its operations. The company has recently acquired Nordic rival Nets A/S and has concentrated on growing its merchant-acquiring business. Nexi has also been streamlining its asset portfolio; it sold its digital identity solutions unit, eID, in the Nordic region to IN Groupe for a sum that could reach €127.5 million.

Despite the industry buzz about a possible acquisition by CVC Capital Partners and other investment funds, Nexi remains focused on its financial targets. Today, the company reaffirmed its full-year guidance and reported an uptick in third-quarter revenue. This announcement comes as a sign of resilience amidst the challenging environment faced by Europe's fintech sector, which has encountered headwinds following the initial surge of activity after the pandemic.

InvestingPro Insights

Drawing from InvestingPro's real-time data and tips, Nexi SpA's financial health appears robust. According to InvestingPro, Nexi displays high earnings quality, with free cash flow exceeding net income, an indicator of strong financial management (InvestingPro Tip 0). This aligns with Nexi's recent strategic decisions to divest non-core assets and streamline its portfolio.

InvestingPro's data also projects growth for Nexi, as net income is expected to grow this year (InvestingPro Tip 1). This expectation is consistent with Nexi's recent reaffirmation of its full-year guidance and reported an uptick in third-quarter revenue.

Lastly, Nexi's recent stock performance has been impressive, with a significant return over the last week (InvestingPro Tip 2). This is likely due to the positive market response to Nexi's potential divestments and strategic acquisitions.

For a more comprehensive evaluation of Nexi and access to more than 10 additional InvestingPro Tips, consider exploring InvestingPro's premium services.

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