Barclays reportedly looking for investors in UK merchant payments arm

4th Sep 2023 14:32

(Sharecast News) - Barclays is looking for buyers to invest in its merchant acquiring unit in the UK, according to reports.

Reuters reported on Monday afternoon that the bank is exploring a sale of a stake in the merchant payment-processing division, though it is not known how large an interest it will part with.

The website, citing anonymous sources close to the matter, reported that the unit could be valued in the region of £2bn, based on EBITDA of £300m and valuation multiples of similar deals.

The bank reportedly sent around a presentation on its merchant acquiring unit to potential bidders earlier in the summer, Reuters said.

Barclays reported in July that its wider Consumer, Cards and Payments division had increased income by 18% year-on-year to £1.3bn in the first half, with the value of payments processed totalling £161bn.

Barclays shares were trading 1.4% higher at 151.14p in afternoon trade.