Investing in Europe #63
Company news and results
Adyen hosted a Capital Markets Day. The payments company is building a banking infrastructure and broadening its offer:
Going forward, Issuing will be included in a full suite of embedded financial products, as platforms have highlighted the need to reduce other financial complexities for their users too. Among the products that will be built out are multi-currency accounts, allowing users to receive payments, initiate pay outs, and safely store money all in one place. These accounts will also enable platforms to facilitate the extension of financing to their users within the platform interface. Due to Adyen’s data-driven risk-scoring capabilities, these financing offers are pre-qualified and require no additional checks on the user end. This will enable platforms to solidify their relationships with their users, while also providing a traditionally underbanked segment, namely small business owners, with the funds needed to build their businesses.
Long-term targets were unchanged:
Net revenue growth: mid-twenties to low-thirties CAGR medium term
EBITDA margin: above 65% in the long term
Capital expenditure: up to 5% of net revenue
The renewable energy producer Encavis increased revenue by 14% in 2021 and expects a similar growth in 2022.
Deals and IPO
Shares in educational publisher Pearson slump as Apollo pulls out (link)
Softbank-owned chip designer Arm to reportedly shift shares of its rebel China unit to speed up IPO (link)
Bolloré agrees €5.7bn deal to sell African logistics business (link)
Sanofi to float drug ingredients manufacturing business on May 6 (link)
CMA blocks planned Cargotec / Konecranes merger (link)
Other news
Global M&A hits the skids as Ukraine war saps confidence (link)
North America accounted for more than half of first quarter deal activity, even though volumes fell 28%, while Asia Pacific activity dropped 33% to $184.2 billion.
European volumes were down 25% to $227.67 billion