Information on the Target

Datatrans AG is a prominent provider of digital payment solutions, serving over 5,000 online merchants, including various sophisticated multinational companies. With over 20 years of experience across diverse industry sectors, Datatrans has developed a reputation as a trusted partner for online businesses, offering a seamless payment gateway that facilitates secure payment processing and advanced fraud prevention services.

In addition to its core services, Datatrans simplifies Payment Card Industry (PCI) compliance through its innovative PCI Proxy platform, which transforms sensitive card data into tokens before entering the merchant’s system. This feature, coupled with their customizable payment solutions, allows merchants to capitalize on profitable payment methods tailored to their specific needs.

Industry Overview in Switzerland

Switzerland boasts a robust digital payments industry, characterized by advanced technology and a high degree of consumer trust. With a mature online commerce market and a significant number of e-commerce platforms, businesses are increasingly seeking integrated payment solutions to enhance transaction efficiency and security. The Swiss market is known for its high standards in financial regulations, which require payment service providers to ensure strict compliance to protect consumer data.

Moreover, the shift towards cashless transactions has accelerated, with an increasing preference for digital wallets and contactless payment methods. This trend has been further fuelled by the COVID-19 pandemic, which has prompted both consumers and businesses to adapt to digital-first solutions. The competition in Switzerland’s payment landscape remains fierce, with both domestic players and international companies vying for market share.

Given this context, the demand for reliable and innovative payment processing solutions continues to grow. Providers like Datatrans are well-positioned to benefit from this transition, particularly as they offer cutting-edge technologies such as tokenization in a landscape increasingly focused on data security and convenience.

The Rationale Behind the Deal

The acquisition of Datatrans by Advent International and Eurazeo is strategically aligned to enhance their collective capabilities in the digital payments sector. Integrating Datatrans’ specialized services with Planet's global payment processing technologies creates a unique “one-stop shop” for online merchants, combining the strengths of both companies to address various payment needs effectively.

This partnership is expected to bolster Datatrans’ market leadership in secure online payment processing and facilitate its expansion into new European markets. Moreover, it aims to drive innovative applications of the PCI Proxy platform across sectors such as retail, gaming, and digital services, thus unlocking new growth avenues.

Information about the Investor

Advent International, founded in 1984, is one of the foremost global private equity firms, having invested in over 380 entities across 42 countries. As of mid-2021, the firm manages €68 billion in assets. With a presence in 15 offices globally, Advent International emphasizes partnerships with management teams to promote sustainable growth in diverse sectors, including technology and financial services.

Eurazeo is a prominent investment group with a portfolio comprising €27 billion in assets under management. With strong expertise in private equity, real estate, and private debt, Eurazeo supports companies at various stages of their growth. Its commitment to long-term partnerships, backed by a stable financial structure and extensive market knowledge, positions Eurazeo as a powerful ally for businesses like Datatrans.

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From an investment perspective, the acquisition of Datatrans by Advent International and Eurazeo appears to be a judicious decision. The digital payments sector is on an upward trajectory, with increasing demand for secure and customizable solutions. Given Datatrans' established reputation and client base, this acquisition could yield significant returns through market expansion and service enhancement.

The combined expertise of Advent and Eurazeo will likely provide the necessary resources to drive Datatrans' innovations and penetrate new markets more effectively. Their backing can also facilitate the introduction of new technologies that align with emerging consumer trends in the payments landscape.

Moreover, the strategic integration of Datatrans’ services with Planet's payment processing capabilities addresses a growing need within the retail and digital sectors for comprehensive payment solutions, making this investment particularly promising. Overall, this deal is indicative of a prudent investment strategy in an evolving marketplace.

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