Advent International and Bain Capital Private Equity acquire payment specialist RatePAY from Otto Group April 3, 2017

  • Integration into Concardis’ payments platform planned
  • First step in buy-and-build strategy of Concardis
  • RatePAY to retain brand and to be managed as an independent company
  • Close cooperation planned between Concardis and Otto Group

Advent International (“Advent”) and Bain Capital Private Equity (“Bain Capital”) have signed an agreement to acquire RatePAY GmbH, the German online payment services arm of the Otto Group, for an undisclosed sum. It is planned that RatePAY will be integrated with Concardis, the Eschborn-based payment service provider acquired by Advent and Bain Capital in January 2017, representing the first step of a buy and build strategy. The closing of the acquisition of Concardis is still pending. RatePAY will retain its brand and will be managed as an independent company within the Concardis Group.

The invoice payment specialist RatePAY , founded in Berlin in 2009, provides processing payment methods for online shops. These include open invoices, instalments, direct debit, pre-payment and managing all back-office processes on behalf of the merchants, such as risk checks on purchasers and debtor management.

Christophe Jacobs van Merlen, a Managing Director at Bain Capital Private Equity, said, “We have been following the German payment service market very closely for many years. RatePAY is unquestionably one of the best companies in its market segment. It has a mature product range, is very customer-oriented and well managed. With this acquisition, we are broadening our product portfolio at Concardis and at the same time gaining additional important commercial expertise that we plan to exploit for further development.”

Jeff Paduch, a Managing Director at Advent International, added, “We see a major opportunity to create a first-class payment service provider in the retail sector. The acquisition of RatePAY is a step forward in our buy-and-build strategy to grow Concardis into a payment champion in the DACH region.”

Going forward a close cooperation between Concardis and Otto Group is planned, especially with regards to further developing innovative payment solutions for e-commerce. Alexander Birken, Chief Executive Officer of Otto Group, said, “Concardis is one of the leading payment service providers in Europe and has vast experience in the retail business. Even more, the company has the necessary size to be successful in the payments market. These are the attributes we want to profit from, in order to be able to offer an even better service to our clients.”

Paying on receipt of an invoice is a very popular payment option in online sales in the DACH region. According to a study by the EHI retail institute, in 2016 a good 29 per cent of all e-commerce turnover was paid via invoices. A further 19.3 per cent of turnover is paid by direct debit. It is planned that the RatePAY product range will be integrated into Concardis’ payment portfolio for e-commerce to start creating genuine added value for its customers.

The purchase of RatePAY is subject to approval by the supervisory authorities.

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