Cardlink Acquisition: Key Details, Impact, and What Comes Next

Worldline's acquisition of Cardlink marks a significant move in the payments industry. By acquiring 92.5% of Cardlink, Worldline strengthens its position in the Greek market, gaining access to a leading local payment acceptance network. This strategic acquisition is expected to drive double-digit revenue growth and enhance Worldline's Merchant Services business in Greece.

What Is Cardlink?

Founded in 2004, Cardlink operates the largest card acceptance network in Greece, serving over 267,000 businesses. Its core products include a variety of POS devices such as Android smart POS and self-service POS, as well as e-commerce solutions like Cardlink checkout and payment links. Cardlink differentiates itself with 24/7 customer support, seamless integration of POS systems with ERP systems, and a strong focus on innovative retail solutions and custom enterprise services.

Who Acquired Cardlink?

Worldline Global is a leading PayTech provider, covering all aspects of the payment services value chain. The company offers a range of solutions for merchants, including in-store, online, and omnichannel payment options, as well as payment terminals and account-to-account payments. For financial institutions, Worldline provides card issuing, acquiring services, and digital banking solutions. Operating in 170 countries and processing over 43 billion transactions annually, Worldline is the 4th largest payment service provider globally.

When Was Cardlink Acquired?

Worldline announced its acquisition of Cardlink on May 28, 2021, and completed the transaction on September 30, 2021. This acquisition aligns with industry trends of increasing electronic payment adoption, particularly accelerated by the COVID-19 pandemic. The Greek market, characterized by high cash penetration and growing e-commerce, presented a strategic opportunity for Worldline to expand its Merchant Services business and leverage Cardlink's established network and relationships with local banks.

Why Was Cardlink Acquired?

• Market Expansion: The acquisition of Cardlink allows Worldline to expand its Merchant Services business into the Greek market, which is experiencing a shift from cash to electronic payments. This move provides Worldline with access to a leading local payment acceptance network, serving up to 243,000 merchants and managing 500 million transactions annually.
• Technology Integration: Worldline plans to integrate Cardlink's services and leverage its leading Greek payment acceptance network. This integration will enable Worldline to offer its innovative portfolio of services and solutions to existing Cardlink customers, including POS acceptance (white labels and Android offering), platform and processing leverage with main Greek banks, and the enlargement of value-added services such as analytics, loyalty, and wallets.
• Competitive Advantage: The acquisition strengthens Worldline's position in the fast-growing Greek market, driven by the ongoing adoption of electronic payments. Cardlink's established relationships with major systemic banks in Greece, such as Alpha Bank and Eurobank, and its leading POS acceptance capabilities provide a competitive edge. The integration aims to improve profitability through operating leverage and cost efficiency, positioning Worldline as a significant player in the European payments industry.

Acquisition Terms

• Acquisition Price: The enterprise value of Cardlink is €155 million, with an estimated cash-out of approximately €130 million at closing for 92.5% ownership.
• Payment Method: The transaction was completed in cash.
• Key Conditions or Agreements:
  • The CEO of Cardlink will retain a 7.5% ownership stake in the company.
  • A customary minority buy-back mechanism through a call option exercisable by Worldline five years after closing.
  • The closing of the transaction was expected in the second half of 2021, subject to the satisfaction of customary condition precedents.

Impact on Cardlink

The acquisition of Cardlink by Worldline has led to notable changes in operations and management. George Drimiotis, the CEO of Cardlink, retains a 7.5% ownership stake and continues to lead the business in Greece, ensuring continuity in leadership. Supported by over 100 new Worldline employees, the integration aims to leverage Cardlink's established network and relationships with local banks. This strategic move is expected to enhance operational efficiency and drive growth in the Greek market, aligning with Worldline's broader European consolidation strategy.

In terms of product offerings and services, the acquisition has expanded Cardlink's capabilities by integrating Worldline's advanced technologies and payment solutions. Customers now have access to enhanced services such as analytics, loyalty programs, and digital wallets. The response from employees has been positive, with approximately 110 new colleagues joining Worldline, indicating a smooth transition. Customers are also expected to benefit from improved service offerings, positioning Cardlink as a stronger player in the Greek payments market. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.