Danish payments group Nets has acquired Finnish firm Poplatek and its spin-off company Poplapay to bolster payment terminal service capabilities.

Poplatek focuses on software development and cloud services, while Poplapay offers payment terminal services in Finland.

The two companies employ around 40 people in total and generate combined annual revenue of €5m.

With this acquisition, Nets seeks to improve its ability to offer payment acceptance solutions to European merchants.

Nets Merchant Services CEO Robert Hoffmann said: “Our ambition is to become a pan-European payments champion. Poplatek is an agile and high performing tech company, and Poplapay has solid capabilities within payment terminal services.

“Together, they will help us increase our flexibility to better accommodate different customer needs across Europe and provide best-in-class payment acceptance solutions, also going forward.”

Poplatek CEO Mikko Virtanen said: “Becoming part of a leading pan-European industry player like Nets is very exciting for us.

“We look forward to taking part in the European journey that Nets has embarked on and bringing our skilled teams together to develop solutions for the benefit of merchants across Europe.”

In August 2019, Nets signed a deal to divest some of its businesses to Mastercard for €2.85bn ($3.19bn).

The divestment included clearing and instant payment services, and e-billing solutions of Nets’ Corporate Services business.

Nets also partnered with KPMG last year to deliver an AI-powered payment fraud prevention solution.