Advent International to Acquire UK Payments Company MyPOS for Over $500 Million

Advent International, with $92 billion in assets, is set to acquire UK payments company MyPOS for over $500 million, marking its entry into digital payments. The acquisition, part of Advent's initiative through the new vehicle Circle, aims to fuel growth in the dynamic industry. Despite investor hesitancy, Advent, known for overseeing major payments buyouts in Europe, anticipates closing the deal by year-end, subject to regulatory approvals.

MyPOS, valued at around 500 million euros, provides payment processing solutions to 170,000 small businesses in continental Europe, catering to sectors like transportation, retail, and hospitality. The move reflects Advent's strategic approach amidst challenges such as stretched valuations and decreased fintech funding post-COVID-19 boom.

Founded in 2012, MyPOS offers not only payment processing but also business cards, accounts, financing, and additional payment services. The company, part of a growing segment targeting underserved clients, competes with traditional banks by providing faster onboarding, advanced technology, and lower costs, particularly beneficial for smaller merchants seeking alternatives to traditional card reader machines.

The acquisition signals Advent's commitment to the payments sector's growth potential, aligning with the recent surge in transactions. MyPOS founder Christo Georgiev is reportedly leaving the company, but management remains actively committed. The company aims to achieve a revenue run rate of 100 million euros this year, despite challenges in pre-tax profits noted in 2022 financial filings.