Prosus announces $4.7bn acquisition
An agreement has been reached with the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for US$4.7 billion
What has happened?
PayU a fintech and payments subsidiary of Prosus, has announced that an agreement has been reached with the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for US$4.7 billion.
The proposed acquisition will see PayU become one of the leading online payment providers globally by total payment volume (TPV).
The deal is subject to approval from the Competition Commission of India.
Who are BillDesk?
BillDesk is an Indian based digital payments solution business, supporting more than 170 payment methods through websites and apps. The groups Payment Acceptance platform integrates payment methods and content platforms, through unified API’s. BillDesk’s platforms allow users direct integrations across banks, card networks and wallets.
Why the acquisition?
The acquisition of BillDesk by PayU, should it find regulatory approval, will see PayU as a leading digital payment solution provider both in India and globally. India remains a key investment destination for Prosus, while the payments and fintech divisions remain core businesses for the company as well.
Prosus (JSE Listing) – Technical Analysis
The market has reacted positively to the deal announcement with Prosus having gained more than 6% in early trade post the announcement.
The short term gains see the Prosus price rebounding off the 1155 support level and from oversold territory. 1400 is the initial upside resistance target from the move, while a close below the 1155 level would suggest the rebound to have failed.
The longer term trend for Prosus does however remain down. For a longer term trend reversal we would like to see the price trading back above the 1400 level.
In summary
- - PayU is a subsidiary of Prosus
- - PayU has reached an agreement to buy BillDesk for $4.7bn
- -The deal is subject to Indian regulatory approval
- - If concluded PayU will become a leading digital payments solutions business in India and globally
- - The Prosus share price has reacted favourably to the deal announcement
- - In the short term we are seeing the Prosus share price rebounding from support and oversold territory
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