Blackstone has bought a majority holding in Sony Payment Services (SPSV) from Sony Bank, a wholly-owned subsidiary of Sony Group, according to a statement by the US private equity firm. Sony Bank will roll over a portion of its equity and will continue to support the growth of SPSV as a minority investor.
This marks Blackstone’s first investment in the financial technology sector in Japan.
Sony Group set up its payment service business in 1995, which became a standalone company in 2006. Today, SPSV is one of the major payment service providers in Japan, offering high-speed and secure infrastructure for customers and businesses to process online payments.
“Sony has been a longstanding partner to Blackstone. Our partnership goes all the way back to Blackstone’s founding nearly four decades ago – Sony was one of our earliest clients,” said Steve Schwarzman, chairman, chief executive officer & co-founder, Blackstone, said, in the statement.
Japan is the fourth largest electronic card payment market in the world with a market penetration of 9.1%. SPSV is supported by Japan’s JPY22.7trn ($160.4bn) e- commerce market and the rapid uptake of cashless payments around the world, according to the statement.
“Digitisation of the economy is a key trend around the world including Japan, and SPSV is exceptionally positioned to benefit with its sophisticated technology and robust customer base,” said Atsuhiko Sakamoto, head of private equity, Blackstone Japan
Kenichiro Yoshida, chairman and CEO, Sony Group, added: “For the past 30 years, SPSV has led Japan’s cashless evolution, making payments safe and secure for customers. We believe Blackstone, a long- standing partner of Sony Group, can help continue the legacy that SPSV has formed and support its next phase of growth.”
Blackstone’s existing private equity investments in Japan include the acquisition of Alinamin Pharmaceutical (formerly Takeda Consumer Healthcare) in a large healthcare transaction and in AYUMI Pharmaceutical.
Hidehiko Nakamura, president & chief executive officer, representative director, Sony Payment Services, said: “We believe this partnership with Blackstone will boost SPSV’s capabilities through investments in IT and talent to help accelerate its growth journey, particularly at an exciting time of growth for the electronic payment industry in Japan.”
