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The partial sale of the card payments business was a key target for SIX, the Swiss stock exchange operator. But is the new partnership with the French rival really a breakthrough

1. Who Are the French?

While SIX sold its payment unit to Worldline, it will still be tied to the French company with a 30 percent stake. Worldline may be active in 17 countries but operates in a relatively discrete manner. It is based in Bezons, a Parisian suburb and communist stronghold, and its origins go back to 1973, when it took over the Carte Bleue operations in France.

Through a series of mergers and takeovers, Atos Group was formed and in 2004 transferred some of its payment and service activities to Worldline. After 10 years and several acquisitions, Worldline was listed on the Euronext exchange, and now has some 9,400 staff and an annual turnover of 1.5 billion euros. About 1,300 employees of the Six payment services division will be integrated into the new organization.

2. New Problem: Staff «Redundancies»

Since Worldline is a listed company and subject to strict communication rules, SIX was only able to give affected staff short notice of the deal. The card payment system management and staff in Switzerland,  Luxembourg, Austria, Germany, Poland and other European locations will become part of Worldline.

Every so-called «carve out» of personnel is anything but a trifling matter. When asked, SIX stressed the transaction was part of a growth strategy. «With the merger we are creating the leading and largest provider on the European payment systems market,» according to a spokesman. Job cuts are not planned, though the company added that some functions could be rendered redundant.

3. Loss of 1-Billion-Franc Jewel

The deal will mean SIX ceding a large slice of its most important revenue source to a foreign group. This will be felt as some 1 billion Swiss francs in card business will disappear from the provider’s balance sheet. SIX hopes this shortfall can be more than offset by the new partnership and the profits from the merger. Whether this goal can be realized is another matter.

4. New Partnership: Blessing for the Banks?