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Mexican payments network Prosa seeks buyer at $1 billion-plus valuation: sources

A sale process for Prosa run by an investment bank has been under way in recent weeks, with the company attracting interest from a number of large payments and financial technology firms

Photo: Prosa website/Screenshot
  • Prosa provides the infrastructure that facilitates more than half the payments in Mexico;
  • It is also one of the largest payment processors in Latin America, completing around 4.7 billion transactions in 2020.

Mexican payments network Prosa is exploring a sale that could value it at more than $1 billion, people familiar with the matter said on Wednesday.

Owned by a consortium of banks including Grupo Financiero Banorte and the local arms of HSBC and Banco Santander, Prosa provides the infrastructure that facilitates more than half the payments in Mexico.

It is also one of the largest payment processors in Latin America, completing around 4.7 billion transactions in 2020.

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A sale process for Prosa run by an investment bank has been under way in recent weeks, with the company attracting interest from a number of large payments and financial technology firms, said the sources, who cautioned there was no guarantee a deal would be struck.

The sources spoke on condition of anonymity to discuss confidential matters. Prosa did not respond to comment requests.

Companies that process digital payments across Latin America have drawn significant interest from both private and public investors, as well as companies seeking access to a market that is expanding rapidly, on account of a young tech-savvy population and the fact many countries have traditionally lacked banking infrastructure.

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On Wednesday, Montevideo, Uruguay-based dLocal raised $617.65 million in its initial public offering on Nasdaq that values the company at $6.06 billion.

Last year, Visa bought payments startup YellowPepper, which operates in nine Latin American countries, to bolster its offerings in the region.

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The other banks that own part of Prosa are Invex Controladora, Banjercito, and the local unit of Bank of Nova Scotia.

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