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Nera to sell payment solutions unit to Ingenico for S$88m

NERA Telecommunications, which provides telecommunications and information network solutions, has agreed to sell its payment solutions unit to France's Ingenico Group for about S$88 million, it said in a Singapore Exchange filing on Friday.

It said it expects a gain of about S$71.5 million on the disposal.

The proposed sale of its entire payment solutions business across South-east Asia will let Nera "sharpen its focus on the core network solutions business and strengthen the balance sheet", it said.

The unit accounted for around 26 per cent of the company's total revenue of S$181.5 million and approximately 21 per cent of its total earnings of S$13.4 million for its financial year 2015, it said, adding that Ingenico's offer represented 35 per cent of Nera's market capitalisation of S$251.5 million as at close of trading on May 19.

Ingenico is based in Paris and has "the world's largest payment acceptance network", Nera noted.