Tinkoff Group increases its stake in CloudPayments to 90%
Limassol, Cyprus - 22 May 2019. TCS Group Holding PLC (TCS LI) (the "Group"), an innovative provider of retail financial services via the Tinkoff.ru ecosystem, announces that Tinkoff Group acquired a 35% stake in CloudPayments, an online payment solutions developer. The agreement was signed on 22 May 2019.
With the Group having acquired another stake of 55% in CloudPayments in October 2017, its total share in the developer is set to reach 90% upon the completion of this deal.
This is the next logical step in Tinkoff's cooperation with CloudPayments, as it will ensure synergies in terms of business growth, strengthen CloudPayments' technological platform and expand the range of internet acquiring opportunities for the Tinkoff Business ecosystem. CloudPayments will remain a separate brand; the agreement does not entail any significant personnel or operational changes.
Oliver Hughes, CEO of Tinkoff Bank, commented:
"Since we first acquired a 55% stake in October 2017, CloudPayments has demonstrated solid results and consistent growth ahead of the market, fully living up to our expectations. The new deal is a logical and planned step forward to boost our cooperation. We value the CloudPayments brand and its unique team, which will continue working on company expansion. We are positive that closer ties will drive dynamic and steady growth in both companies."
Dmitry Spiridonov, CEO and co-founder of CloudPayments, commented:
"We highly appreciate our cooperation with Tinkoff over the last one and a half years: the Tinkoff team has been very helpful in sharing their expertise and contributing to process optimisation. Moreover, they allowed CloudPayments to continue operating as an independent brand, enabling us to remain highly agile and autonomous and promptly implement new solutions for the benefit of our customers. Deeper integration will strengthen our leadership on the internet acquiring market and further improve the quality of services provided to our partners."
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About the Group
TCS Group Holding PLC is an innovative provider of online retail financial services. It includes Tinkoff Bank, mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of development hubs in major Russian cities. The Group also has Tinkoff.ru, an evolving ecosystem that offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.
The Group's key business is Tinkoff Bank, the country's first and only direct bank and the core of the Tinkoff.ru ecosystem.
Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 12.4% as of 1 April 2019. The 1Q'19 IFRS net income of TCS Group Holding PLC amounted to RUB 7.2 bn, ROE stands at 64.4%.
With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre staffed by over 10,000 employees, which makes it one of the largest in Europe. To ensure smooth delivery of the Group's products, the Group has a nationwide network of over 2,500 representatives.
In 2018 Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank, in 2018, 2016 and 2015, the Best Consumer Digital Bank in Russia, and in 2017 and 2013 The Banker recognised it as the Bank of the Year in Russia. The bank's mobile app has been consistently praised by local and global independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and Tinkoff Bank. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. The Group and Tinkoff Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff Bank do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group and Tinkoff Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, Tinkoff Bank and their respective operations.