Mögliche Interessenten: MasterCard, AmEx, Google or Amazon!!!!!!!!!!!
Company update Wirecard AG Mid cap: IT services (full coverage) This afternoon, Visa Card Inc. (US) made a bid for the internet payment service provider Cybersource (US) for a price of $26 per share; yesterday?s closing price was $19.44. The Visa bid represents a premium of 33% to the current share price of $19.44 or 26x 2010E EV/EBITDA and 27.9x 2010E net profit. On the basis of these transaction multiples, Wirecard would bear upside of more than 100%, which translates into prices of ?18.60 (2010E EV/EBITDA) and ?17.00 (2010E PE). For us, this is a logical step, as Visa Card should enhance its value chain as an e-commerce transaction business. Here, Cybersource is a direct competitor of Wirecard. Both companies offer credit and risk management, and payment security solutions optimised for e-commerce business. However, in a call Visa Card mentioned that it plans to focus mainly on the US and Latin America online markets where Cybersource holds the leading position. Wirecard focuses its business on the European and Asian e-commerce markets. Unlike Wirecard, Cybersource does not own a bank and is, therefore, unable to provide banking solutions to its 285,000 customers. This looks likely to change after a successful acquisition as Visa can provide, like Wirecard, credit, debit and prepaid cards to its customers. Visa?s announcement today, in our view, raises further potential for consolidation in the online payment service provider industry. This is a positive catalyst for our Buy recommendation for Wirecard. With companies like MasterCard, AmEx, Google or Amazon having potentially great interest in insourcing online payment processes, Wirecard appears to be among the few European targets left. We reiterate our Buy recommendation with a price target of ?11.50.
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