Getnet Chile and PagoNxt Join Forces for Market Leadership
In a significant move to bolster its presence in the competitive payments landscape, Getnet Chile is proposing a strategic alliance with PagoNxt, a global payments platform under Grupo Santander. This partnership is set to be presented to shareholders, demonstrating Getnet’s commitment to leverage enhanced technological capabilities and a wider international reach.
PagoNxt: A Global Payments Leader
PagoNxt stands as the largest acquiring operator across Latin America and the Iberian Peninsula. Integrating PagoNxt into Getnet Chile symbolizes a monumental stride towards strengthening Getnet’s position in the local payments market. The partnership not only offers a boost to Getnet's operational scale but also vast resources from Grupo Santander’s comprehensive network.
Significance of the Strategic Alliance
Getnet Chile has shown impressive results since its inception, securing an 18.9% market share in physical card transactions and boasting over 316,000 point-of-sale (POS) terminals nationwide. The proposed acquisition involves incorporating Getnet Payments, SL., a subsidiary of PagoNxt, into the Chilean operations. The deal proposes a 49.99% stake acquisition, backed by a cash payment of Ch$41.6 billion, in addition to a seven-year renewable distribution agreement valued at Ch$45.2 billion. This outcome solidifies Banco Santander Chile’s controlling interest at 50.01%.
Enhancing Global Capabilities
On a broader scale, Banco Santander is committed to enhancing its global operations and capabilities, capitalizing on its extensive market knowledge. This strategic move is not just about acquiring more resources, but also about fostering innovation and opening new avenues for growth and development. The collaboration with PagoNxt emphasizes the pursuit of continuous innovation and sustained competitiveness in the ever-evolving payments sector.
Past Performance and Future Expectations
PagoNxt has recorded impressive transaction volumes, processing payments worth €222 billion in the past year, operating an expansive network that managed 9.8 million transactions for 1.2 million merchants. Such impressive figures highlight the capabilities that Getnet will now harness, enhancing its ability to compete in the local market.
Value Proposition for Shareholders
For shareholders, this partnership is a cornerstone allowing them to maximize the existing value generated through Getnet’s remarkable performance since launching operations in Chile. This strategic alliance not only fortifies the company's position but also equips it to confront future challenges in the payments market effectively. The alliance ensures that Getnet's existing clients experience no disruptions, retaining the quality and services they currently enjoy.
Strength of Banco Santander Chile
Banco Santander Chile is recognized as a financial powerhouse with strong risk ratings across various agencies, reflecting its stability and reliability in the financial sector. With a solid foundation comprising over $68 billion in assets, extensive operational capacity, and a workforce exceeding 8,500 employees, the bank is poised for significant growth and innovation as it embraces technological advancements through this latest partnership.
CONTACT INFORMATION
Cristian Vicuña
Chief Strategy Officer and Head of Investor Relations
Banco Santander Chile
Bandera 140, Floor 20
Santiago, Chile
Email: irelations@santander.cl Website: www.santander.cl
Frequently Asked Questions
What is the significance of the partnership with PagoNxt?
This partnership enhances Getnet Chile's market leadership, offering technological improvements and a stronger international network.
How will this alliance affect Getnet's existing clients?
The alliance will not entail any changes to current contracts or services for Getnet’s clients, ensuring continued service quality.
What are the expected benefits for shareholders?
Shareholders can expect greater value from Getnet’s performance and increased strength in the competitive payments market.
How does Banco Santander Chile support Getnet's growth?
Banco Santander Chile's extensive experience and financial ratings provide a solid foundation for Getnet’s growth through strategic initiatives.
What are PagoNxt's capabilities in the global payments market?
PagoNxt handles massive transaction volumes, providing innovative payment solutions and value-added services globally.
