Enel’s fintech pivot comes at generous price

The Enel logo is seen in Milan, Italy, February 5, 2020. REUTERS/Flavio Lo Scalzo

LONDON, Dec 24 (Reuters Breakingviews) – Enel (ENEI.MI) is paying handsomely to get its foot in the fintech door. The 70 billion euro Italian utility is shelling out up to 361 million euros for half of payments firm Mooney. Including debt, the deal values the Italian group, currently owned by private equity outfit CVC, at nearly 1.4 billion euros. Financial services operator Intesa Sanpaolo (ISP.MI) is scooping up the other half.

There’s logic to Enel veering off its beaten path. Mooney already processes 20% of all its bills. Bringing the payments processor in-house will help that ratio climb, presumably bringing efficiencies. Intesa, meanwhile, gets access to Mooney’s 20 million customers. At nearly 8 times next year’s probable sales, however, they’re both paying for the privilege. The comparable multiple for 15 billion euro Italian payments firm Nexi (NEXII.MI) is 7 times. Enel’s shareholders, rather than its customers, may be the ones grumbling about their utility bills. (By Ed Cropley)

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Editing by George Hay and Oliver Taslic