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German fintech Heidelpay is looking for acquisitions, says CEO

FRANKFURT (Reuters) – German fintech Heidelpay is considering acquisitions and considering a possible initial public offering, its chief executive said.

CEO Mirko Huellemann’s comments on his plans are the most extensive since private equity firm KKR last year purchased a majority stake in a payment service provider.

In a business where size matters, Huellemann said there are 300-400 potential takeover targets in Europe.

“Of those, 20 or 30 are certainly interesting to us,” he told Reuters, noting that prices of between €2 million and €500 million (£1.69 million to £422.02 million) would be possible.

KKR paid 600 million euros for a 60% stake in Heidelpay last year, sources said, valuing the company at almost 1 billion euros. Huellemann personally owns over 30%.

Huellemann said an IPO at some point is possible, but declined to give a time frame.

“IPO, of course, is always an option to raise fresh capital,” he said. “But KKR has just joined us and we have a few years of development ahead of us.”

The company, like Wirecard’s competitors from Germany, Adyen from the Netherlands and Klarna from Sweden, benefited from the increase in cashless payments and widespread purchases of goods online.

According to the company, in 2019 Heidelpay doubled its revenue to EUR 90 million.

(Reporting by Patricia Uhlig; Writing by Tom Sims; Editing by Michelle Martin)