Background
EPI was founded in 2000 as a Norwegian company specialising in financial transaction processing and related services in Eastern Europe.

When EPI approached Reiten & Co in early 2003, it owned one processing centre in Latvia and 25% of a processing centre in Lithuania. The company was seeking additional equity financing to acquire the remaining share of the Lithuanian processing centre and to continue expansion into other Eastern European markets. Reiten & Co negotiated the transaction on an exclusive basis.

Investment Rationale
EPI’s top management was based in Oslo. The three founders held the top management roles and there was a small, but highly capable organization both in Oslo and the Baltics. The three founders had over 20 years each of relevant experience in the banking and card processing industries and they had an impressive network in the Eastern European markets.

Although EPI was small, it had an attractive position in the rapidly growing Baltic card payment industry and was well positioned to enter EU accession countries, where significant structural changes were expected to occur. EPI was considered to be well run, had limited cyclicality, and boasted strong historic growth with solid margins and cash flow. In addition, significant market consolidation of regional transaction centres was expected.  EPI was well positioned to drive the consolidation.

Reiten & Co had significant market knowledge prior to evaluating EPI.

Value creation
Reiten & Co and the management team completed the acquisition of the Lithuanian centre in two transactions during 2003 and a successful buyout of the Eastern European based company Transacty AS in January 2004. Throughout the ownership period, Reiten & Co also supported management in defining the further strategy of the company, and in developing the organization accordingly.

To finance the Transacty acquisition and future growth, Reiten & Co assisted EPI in securing senior debt and an additional mezzanine financing.

During the ownership period, operations were started organically in eight new countries in the CEE-region. Significant investments in security and back-up solutions were made. Acquisition processes in both Russia and Austria were in progress when EPI was sold.  

Following a highly competitive auction process, EPI was sold in September 2005 to First Data Corporation, a listed American company offering transaction services world wide. First Data utilized EPI as a bridgehead into the Eastern European market.