Fosun to take 20% in payment play Ingenico Group

A fund managed by the Chinese conglomerate will take a 20% stake in a Hong Kong-based entity owned by Ingenico, which in turn controls the company's China subsidiary. Ingenico claims to be the number one payment terminal provider in China, working with a range of banks and payment services players.

The company acquired a 55% interest in Fujian Landi, a leading Chinese transaction solution provider and manufacturer of point-of-sale (POS) terminals in 2008, paying $17.05 million.

Ingenico has also sought to expand its business beyond payment terminals, forming a joint venture with Chinese telecom equipment supplier ZTE Corp. to introduce mobile-based POS services. It will rely on Fosun's local foothold to further expand its position in China's payments space.

"Ingenico Group's Landi is China's leading POS terminal provider, whose products and solutions are used in financial institutions all across China. We believe that this partnership will effectively combine our resources in financial services and Mobile Internet with Landi's strong foothold, thus enhancing Fosun's comprehensive financial capabilities while driving Ingenico Group's growth in the electronic payment market in China," said Guangchang Guo, chairman of Fosun, in a statement.

Founded in 1980, Ingenico operates in 170 countries, working with more than 1,000 banks across over 300 different payment methods. Payment terminals account for more than three quarters of revenue, with payment services and maintenance making up the remainder. In 2014, the Asia Pacific revenue share was 20%, compared to 49% for Europe and Africa, 13% for Latin America, and 11% for North America.

The company posted revenue of EUR1.6 billion in 2014, up 19% year-on-year, while net profit rose 43% to EUR172 million.

Fosun is supporting the China expansion of foreign companies across a wide range of sectors. Most recently, it partnered TPG Capital in the acquisition of Canadian circus entertainment company Cirque du Soleil, bought a stake in UK-based travel company Thomas Cook, and sealed the purchase of Club Méditerranée.

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