(Alliance News) - The UK's monopoly regulator on Tuesday found that US-based Bottomline Technologies Inc's acquisition of FTSE 100 Experian PLC's Payments Gateway business "does not raise any competition concerns".
In March 2019, Bottom Technologies, a payment automation firm, announced it would buy the Experian Payments Gateway business for USD12.5 million. In a filing, Bottomline explained it intended the assets to "complement its existing UK payment products".
The Competition & Markets Authority conducted a phase two investigation after a phase one probe found competition concerns.
The CMA said: "However, following further in-depth analysis carried out as part of a Phase 2 investigation led by an independent group of panel members, the CMA has now provisionally found that the merger is not likely to raise competition concerns.
"This is largely because the CMA has found that EPG was no longer a strong force in the market and that, following the deal, there remain enough alternative providers competing with Bottomline for customers."
The watchdog will now invite comments on the phase two findings before publishing a final report by April 5.
The phase one investigation, the CMA said, found the deal "may reduce competition and the merged company may increase prices, reduce product availability, or reduce its investment in innovation".
In August 2019, the CMA issued Nasdaq-listed Bottomline with an "unwinding order" related to the Experian Payments Gateway. An unwinding order requires Bottomline to reverse any integration of the business already undertaken and restore the acquired business back to the state it was prior to integration beginning.
In May that year, the regulator issued an initial enforcement order on the deal which is intended to prevent any integration taking place.
Experian shares were marginally higher at 2,825.00 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Experian (EXPN)
