The merger between Italian technology vendors Societ Interbancaria per l’Automazione (SIA) and Societ per iServizi Bancari (SSB) was completed yesterday.
The new company, which is called SIA-SSB S.p.A, has 1,875 employees. It is chaired by Carlo Tresoldi, previously Central Director of the Bank of Italy Treasury and Payment Systems area. The new CEO is Renzo Vanetti, previously SIA Group CEO. The new Managing Director is Gian Bruno Mazzi, previously SSB CEO.
The new Group is composed of SIA-SSB, the parent company, and the subsidiaries Kedrios, Perago, RA Computer, SiNSYS and TSP, all of which will maintain autonomous corporate structures in order to sustain existing business partnerships. Soon to be added to these subsidiaries is the Hungarian company GBC, the purchase of which is currently awaiting local market authorization.
After approval of the merger on 5 April this year by the Italian Antitrust Authority (Autorit Garante della Concorrenza e del Mercato), the company is actively implementing the measures intended to maintain sector competitiveness, indicated by the Authority in the same approval ruling.
Work to integrate the two companies is already in hand, and is expected to be completed before the end of 2009.
Combined revenues for 2008 are expected to exceed Euros 400 million, with profits (as measured by EBIT) expected to hit 13% of this figure.
Organizationally, the CEO, Renzo Vanetti, and Internal Auditing (responsibility for which is entrusted to Raffaele Pace) will report to the Chairman. The CEO will co-ordinate the activities of the Managing Director, Gian Bruno Mazzi, as well as the Communications Department (entrusted to Sofia Masiello), the Strategic Planning Department (entrusted to Fabrizio Canedoli), and the Legal and Corporate Affairs office (entrusted to Monica Coppo).
The General Manager will guide the three Business Units of Cards, Payment Systems and Capital Markets (entrusted respectively to Nicola Cordone, Daniel Bellini and Paolo Tadini), Network Services (Giacomo Buico), the Operations Centre (Fabio Grignani),Sales (Tiziana Natale), Human Resources, Organization and Quality (Emanuela Ghianda), Administration, Finance and Control (Andrea Severi), Security and Risk Management (Claudio Pedrotti), Logistics and Purchasing (Franco Riccardino).
The current SIA-SSB Board of Directors, nominated last December, has the following members:
Carlo Tresoldi ChairmanBruno Matteo Accornero Deputy ChairmanRenzo Vanetti Chief Executive OfficerTiziana Bernardi DirectorGiorgio Ferrero DirectorPaolo Grandi DirectorNazzareno Gregori DirectorEnnio La Monica DirectorGiancarlo Lunghi DirectorGiovanni Pirovano DirectorUmberto Quilici DirectorAlessandro Santarsiero DirectorElvio Sonnino DirectorGiovanni Viani Director
The Board of Statutory Auditors members are:
Mario Cattaneo ChairmanFausto Gobbi Statutory AuditorGiorgio Silva Statutory Auditor
The following table lists the ten leading shareholders of SIA-SSB and their equity stakes:
Intesa San Paolo Group 28.6%Unicredit Group 17.6%Capitalia Group 6.4%MPS Group 5.2%Istituto Centrale delle Banche Popolari Italiane 4.3%BNL Group 4.2%Telecom Italia 4.1%Banco Popolare di Verona e Novara Group 4.0%UBI Banca Group 3.8%Mediolanum Group 2.9%
SIA-SSB is engaged in credit and debit card processing, with full processing services, system services and accessories; payment systems, with clearing services; inter-bank corporate banking, solutions for central banks and commercial banks, plus system services; capital markets with market platform management services, securities back-office and information systems; surveillance solutions for financial intermediaries; systems for access to fixed income markets; and networking services for connectivity.
Currently, SIA-SSB handles 7.3 billion transactions a year, including transactions with debit and credit cards and payment and collection operations, and carries 8 thousand billion bytes on its network plus 73 million trading transactions on financial markets.
The new group sees growth prospects mainly in Europe, thanks to its relatively large size, the operational efficiencies stemming from the merger, and its ability to help clients cope with the extensive transformation brought about by European directives such as SEPA (Single Euro Payment Area) and MiFID (Markets in Financial Instruments Directive).
In a statement SIS-SSB explained that the strategy of the new Group has six main objectives. First, to complete the portfolio of products and services for the card processing sector by developing value added and terminal management services. Secondly, to develop European payments products in clearing, access systems, corporate banking inter-bank solutions, and applications for central banks. Thirdly, to provide products to financial intermediaries in the areas of market surveillance, securities back office services, and EU directives. Fourthly, to develop pan-European networking services based on a sound technological infrastructure and which are effective at the data level. Fifthly, to pursue opportunities for internal and external growth by concluding large scale contracts with medium to large scale operators in Italy and Europe. Sixthly, to obtain greater economies of scale through the integration of the two companies and to seek greater efficiency through cost reductions.
Through subsidiaries, commercial partnerships and/or important local contracts, the SIA-SSB Group also operates in Romania, South Africa, Sweden, Czech Republic, Norway, Belgium, Hungary, Netherlands, Germany, Poland, Slovakia, Ukraine, France, Greece, Austria, Switzerland, Finland, Spain, Portugal, Denmark, United Kingdom and Ireland.
SIA-SSB has a new corporate brand, interpreting its new international position and competitive capacity, distinguished and distinct from its competitors. The company explains that the new logo is “a combined inheritance from the two companies and, at the same time, conveys a united view for the future, interpreting the key concepts of flexibility, growth and leadership.”