Ant Group acquired Multisafepay

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Name of the deal: Ant Group acquired Multisafepay
Date announced: Announcement date 05/01/2024 and closing date 01/07/2024
Date closed: Announcement date 05/01/2024 and closing date 01/07/2024
Published value: €182 million
Buyer(s): Ant Group (the parent company of the Chinese payment solution ‘Alipay’).
Target(s): Multisafepay
Seller: Multisafepay Shareholders

Involved firms and advisors

Involved firms and advisors buy side:
Legal advisor: Simmons & Simmons, Linklaters and PwC

Involved firms and advisors target: –

Involved firms and advisors sell side:
Stibbe

Pitch

Brief description deal / Deal outline
Ant Group, a Chinese financial technology company and subsidiary of Alibaba Group, has acquired Multisafepay, a Dutch fintech company that provides payment acquiring and processing services to more than 18,000 small and medium-sized businesses and works with commercial partners to offer additional services. The acquisition is part of the Chinese financial technology group’s latest push into Western payment markets.

About Multisafepay
Founded in 1999, MultiSafepay is a Dutch payment service provider that offers innovative, secure, and efficient online payment solutions to businesses across Europe. With a strong focus on enhancing the payment experience, MultiSafepay provides a comprehensive suite of services, including various payment methods, subscription management, fraud protection, and customizable checkout solutions.

The company employs a team of over 150 dedicated professionals who are committed to empowering businesses with seamless payment processing capabilities. MultiSafepay’s scalable solutions cater to businesses of all sizes, from startups to large enterprises, allowing them to optimize their e-commerce platforms and deliver a frictionless experience for their customers.

MultiSafepay’s most recent annual report showed a net profit of 1.3 million euros ($1.43 million) on a gross income of 11.9 million euros in 2022.

In 2024, MultiSafepay entered a new phase of growth following its acquisition by Ant Group’s international arm, expanding its global reach and technological capabilities. This strategic acquisition has further solidified MultiSafepay’s position in the competitive fintech market.

With this acquisition, MultiSafePay will be integrated with Antom, a subsidiary of Ant International, which currently supports eCommerce in more than 40 markets with payments in over 100 currencies.

About Ant Group
Ant Group is a globally recognized fintech company, headquartered in Hangzhou, China. Founded in 2004 as a subsidiary of Alibaba Group, Ant Group has rapidly grown into a leader in digital payment and financial services. Its flagship product, Alipay, is one of the world’s largest mobile payment platforms, serving over a billion users and facilitating seamless transactions across a wide range of industries.

This acquisition follows Ant Group’s purchase of the Singapore-based payment company 2C2P in 2022. Ant, which operates the cross-border payment platform Alipay+, also acquired the UK-based payment group WorldFirst in 2019 for 700 million dollars.

Why should this deal win the Award for Best Deal Mid-Cap 2024?
Given the regulatory environment for financial transactions and cross-border deals, this acquisition involved complicated compliance and regulatory considerations. Successfully overcoming these challenges and obtaining regulatory approvals adds to the complexity and significance of the transaction.

The acquisition is also expected to drive future growth for both companies. For Ant Group, it represents an opportunity to expand its market presence and innovate within the payments industry. For Multisafepay, it provides access to Ant Group’s extensive resources and international network, potentially accelerating its growth and technological advancement. Overall, Ant Group’s acquisition of Multisafepay is a significant strategic move with far-reaching implications for the global payments landscape. Its potential to drive innovation, expand market reach and improve competitive positioning makes it a notable deal worthy of recognition and nomination.

Deal rationale
Through this strategic partnership, MultiSafepay will leverage Antom’s cutting-edge technology and digital capabilities to further expand its product offering and SME merchant coverage in the region. The integration will promote convenient, secure and accessible payment solutions and digitalisation services for businesses, especially small and medium-sized enterprises (SMEs), across Europe.

Gary Liu, general manager of Antom Global says: “SMEs are the pillar of regional and global prosperity. With digital innovations, we look forward to building together more secure, flexible and efficient payment solutions with cross-sector partners, for small businesses to thrive in a truly inclusive and sustainable global commerce ecosystem.”

Olaf Geurs, CEO of MultiSafepay, said, “The past 25 years have been an incredible journey. Together with our amazing team, we have bootstrapped MultiSafepay into a leading full-service PSP in Europe, overcoming countless obstacles along the way. The entrepreneurial spirit never sleeps, which is why we’re partnering with Antom to unlock even greater growth potential for MultiSafepay’s products and services, attracting even more businesses to our ecosystem.”

What is the impact of this deal for the company?
MultiSafepay is partnering with ANT to unlock even greater growth potential for MultiSafepay’s products and services and attract even more businesses to our ecosystem. MultiSafepay will benefit from ANT Group’s advanced technology infrastructure and resources. This could lead to the development of more sophisticated payment solutions, improved system performance and enhanced security features.

Ant Group’s extensive international presence can also help Multisafepay to expand its operations into new markets and regions where it previously had limited or no presence. This global reach could open up new business opportunities and customer bases.

What is the impact of this deal for the direct stakeholders?
Multisafepay will gain access to Ant Group’s extensive resources and technological capabilities. This could enhance its product offering, improve its technological infrastructure and accelerate innovation. Being part of a larger financial conglomerate can also provide greater financial stability and support for growth initiatives.

What is the impact of this deal on society?
SMEs are the cornerstone of regional and global prosperity. Through digital innovation, ANT’s looks forward to working with cross-sector partners to build more secure, flexible and efficient payment solutions for small businesses to thrive in a truly inclusive and sustainable global commerce ecosystem.

The integration of Multisafepay’s payment solutions with Ant Group’s technology could lead to innovations that improve the efficiency of digital payments. This could simplify transactions for consumers and businesses, contributing to a more streamlined financial ecosystem. With Ant Group’s focus on financial technology and inclusion, the deal could also potentially expand access to digital payment solutions in underserved regions or among underbanked populations.

What was most complex about this deal?
Given Ant Group’s significant influence in the financial technology sector and Multisafepay’s established presence in the payments industry, the acquisition faced scrutiny from antitrust regulators. Ensuring compliance with various national and international regulations to avoid anti-competitive practices was a major challenge. The deal also involved multi-jurisdictional regulatory considerations, requiring approvals from financial and competition authorities in different countries. Navigating this complex regulatory environment and ensuring compliance with local laws added to the complexity.