Spanish financial services company Banco Sabadell is set to sell 80% of its payments business, dubbed Paycomet, to Italian digital payments company Nexi for €280m.

The Spanish lender will retain a 20% interest for at least three years, whilst aligning interests with its new industrial partner.

“After that period, Banco Sabadell will have the option to sell its 20% stake and, as such, the total transaction amount has been fixed at €350m and may be increased depending on the achievement of objectives,” the bank said.

The transaction is expected to be completed in the fourth quarter of this year, subject to the receipt of necessary approvals.

Banco Sabadell business banking and network General Manager Carlos Ventura said: “This agreement brings economies of scale and greater cost efficiency to our value proposition, as well as higher quality technological solutions and specialisation so that we can continue to improve our services for our customers.”

The two companies have signed an agreement for a strategic partnership spanning 10 years, which can be renewed.

Through the partnership, Sabadell aims to improve the value proposition and customer experience in corporate, business, and self-employed segments.

Also, the bank will focus on further expanding its growth opportunities, advancing its strategy to become a top payment technology company in Europe.

The partnership agreement follows a competitive process in which a detailed analysis of the capabilities of the various potential partners was the decisive factor.

The transaction will enable Nexi to handle transactions worth around €48bn for more than 380,000 Spanish shop owners.

Also, it will add around €30m to Nexi’s core profit based on 2023 data.

Jefferies and Rothschild & Co served as financial advisors, while BCG, KPMG and Allen & Overy served as industrial, and legal advisors to the payments company.

Nexi CEO Paolo Bertoluzzo said: “We are very proud to have been chosen by Banco Sabadell, the best possible Spanish strategic partner, for our deep product and technology capabilities.

“With this partnership, we enter, from a strong position, Spain, a market that we have always considered highly attractive for digital payments with great potential for further profitable and sustainable long-term growth, quite similar to Italy.

“The partnership with Banco Sabadell will allow us to be deeply entrenched in the market with a partner that fully shares our ambition to accelerate the development of Spanish digital payments further through product and commercial innovation.”