French eftpos outfit Ingenico has acquired a 55% stake in Chinese payments systems vendor Fujian Landi for EUR11 million in cash.
Formed in 1992 and based in the city of Fuzhou, privately-held Fujian Landi has a presence in 23 regions across China. The firm posted revenues of around EUR18 million in 2007 and installed 1.5 million payment terminals during the year.
Ingenico says the tie-up will create a strong player in the Asian market, with the largest market share in China. The firms will target North Eastern Asian markets like South Korea as well as China.
"This acquisition is a significant step in our strategy to enter high-growth markets," says Philippe Lazare, CEO, Ingenico. "Our partnership with Landi will provide Ingenico with the leading position on the Chinese market together with a paramount commercial platform in the PRC for the Asian continent."
The global Chinese eftpos market has huge potential, driven by an increased demand for non-cash payments and the necessary equipment for new merchants and the country’s banking industry, says Ingenico.
Earlier this year Ingenico was forced to abandon a $332 million bid for Hypercom after the Arizona-based e-payments firm acquired a card payments unit from Thales, scuppering any deal.