Mastercard is exploring the sale of its real-time payments unit that it acquired from Denmark's Nets Group in 2019 for $3.2 billion. This potential sale was reported by the Financial Times, citing individuals familiar with the situation. Investment bankers have been hired by the credit card giant for the sale, which could attract interest from private equity firms.
The unit being considered for sale generates around $370 million in annual revenue and approximately $100 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). It's anticipated that Mastercard might fetch a lower valuation for the unit than the price it paid in 2019. The 2019 acquisition involved a majority stake in Nets' corporate services businesses, including its clearing and instant payment services, as well as e-billing solutions.
This potential divestiture comes as Mastercard intensifies its focus on stablecoin infrastructure and blockchain-based transfers. Earlier in the current month, Mastercard agreed to acquire stablecoin infrastructure firm BVNK for up to $1.8 billion. The company has also been re-evaluating its investment priorities, having announced plans to lay off about 4% of its workforce earlier this year. The reported article does not mention the sale of Vocalink, which Mastercard acquired in 2016 for approximately £700 million plus a potential earn-out.
