UniCredit Group has agreed to divest its card processing business in Italy, Germany and Austria, to SIA in a transaction valued at approximately €500m.

Upon completion of the transaction, SIA will own the processing activities of nearly 13.5 million payment cards and 2,06,000 POS terminals as well as12,000 ATMs in Italy, Germany and Austria.

Commenting on the deal, SIA CEO Massimo Arrighetti said: “This acquisition allows SIA to strengthen further its competitive positioning at domestic and international level, especially in Germany and Austria – two of the main target markets in the 2016-2018 Business Plan – to increase the volumes of the payments managed on our technology platforms and thus achieve greater economies of scale.”

Additionally, UniCredit has signed a 10-year outsourcing contract with SIA for the supply of processing services for transactions executed using debit, credit and prepaid cards, and for the management of POS and ATM terminals.

The deal is expected to provide a consolidated net capital gain of almost €440m for UniCredit in 2016, with an expected positive impact on the fully loaded CET1 ratio of about 12 bps.

Pending receipt of regulatory approvals, the transaction is likely to conclude by the end of 2016.