History and Development
The foundation for Nets as it is known today was the merger in 2010 between Danish payments company PBS Holding A/S and Norwegian payments company Nordito AS. Nets was acquired by the Advent Funds, the Bain Capital Funds and the ATP Investment Vehicles in July 2014 from the previous shareholders, consisting of 186 primarily Danish and Norwegian banks, through an acquisition of the parent operating company of the Nets group, Nets Holding A/S. The acquisition followed a review of Nets’ strategic alternatives by the previous Board of Directors.
Nets operates in a highly competitive international industry that is undergoing significant change. The payments sector is characterised by increasing competition, consolidation and regulation. Scale, efficiency, innovation, technology capabilities and customer focus are key success factors for payments companies in the current environment. To remain competitive, Nets needed an effective corporate governance structure and streamlined decision-making, with a commitment to make necessary investments in IT and technology so the business could become more market-oriented, commercial and customer-focused.
Since Nets was acquired, the owners together with management, have emphasised the following strategic initiatives that form the basis of Nets’ transformation programme:
- An increased emphasis and organisational focus on Nets’ customers and their needs so as to drive increased commercialisation across the business.
- Enhancing the Merchant Services business through growth initiatives (including e-commerce), product development, strategic acquisitions in high growth areas and increased focus on customer retention.
- A focus on strategic investment in Nets’ technology platforms to both strengthen the stability and security of the core platforms (including an approximately three times increase in spending on information security in the last two years) and also enable enhanced product innovation and a faster time to market.
- Promoting significant recurring cost savings and operational efficiencies including, for example, by reducing vendor prices as a result of procurement initiatives, enhancing efficiencies associated with running Nets’ technology platforms and improving the cost of application of development and maintenance (partly driven by a more cost-efficient sourcing mix).