Two of Europe's largest payments businesses, Nets and Concardis, are set to form a company with £1.1 billion of annual net revenue.

Announced at the Money 20/20 Europe conference, the transaction is a structured as a share exchange, which will see Concardis' private equity shareholders contribute their shares in return for Nets shares.

Private equity giants Advent and Bain, who own Germany-based Concardis, will swap their holdings in Concardis for Nets shares. Hellman & Friedman, behind Nordic-based Nets, will see its holding diluted.

"We want to shape the ongoing consolidation in the European payments industry and further drive our pan-European expansion," said Nets' chief executive Bo Nilsson.

"Germany offers attractive growth potential due to market size, consumer spending and the fact that around 75 per cent of all payment transactions are still cash-based."

Nilsson will lead the combined group, while Robert Hoffman will continue at the helm of Concardis, reporting directly to him. The two firms will retain their respective brands.

Advent and Bain formerly owned Nets as well as Concardis, before floating the business in 2016. Hellman & Friedman took the firm private equity earlier this year, though Advent and Bain remained minority investors, which likely helped drive this deal.

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