Source: Nasdaq GlobeNewswire / 08 Apr 2021 11:24:27 America/New_York
8 April 2021
PayPoint completes the disposal of Romanian business to Innova Capital
Transaction completed at significant profit, underpinning step change in UK-focused strategy
Further to the announcement of 21 October 2020, PayPoint is pleased to announce that it has completed the disposal of its Romanian business, PayPoint Services SRL* (“PayPoint Romania”), to Innova Capital (“Innova”), a private equity firm operating in Central and Eastern Europe, after receiving regulatory and other customary approvals. The cash consideration for the disposal is £48 million based on current exchange rates on a cash free debt free basis, after closing balance sheet adjustments.
The sale is consistent with PayPoint’s focus on its key strategic priorities and the delivery of enhanced growth and value in its core UK markets.
PayPoint has been operating in Romania since 2007, where it has partnered with local retailers through circa 19,000 sites to enable people to make cash bill payments, money transfers, road tax payments and mobile phone top-ups. In the financial year ended 31 March 2020, PayPoint Romania delivered gross revenue of £69.7 million, adjusted EBITDA (before non-recurring revenues and costs) of £7.3 million and a profit before tax of £6.8 million. The gross assets of PayPoint Romania at 31 March 2020 were £48.5 million.
PayPoint Plc’s financial statements for the year ended 31 March 2021 will include a full year’s net profit from the Romanian business.
Nick Wiles, Chief Executive Officer of PayPoint Plc, said: “Consistent with the step change in our UK-focused strategy, we are pleased to have completed the sale of PayPoint Romania. I would like to thank the Romanian management team and employees for their contribution to PayPoint over the last 13 years. We believe that Innova Capital is the right owner to take the business forward and we wish PayPoint Romania and Innova well for the future.”
Krzysztof Kulig, Senior Partner at Innova Capital, explained: “We are pleased to conclude the purchase of PayPoint Romania, a trusted payments operator and a market leader. Our goal is now to bring our sector experience and help its expansion into new services which will introduce an even higher level of customer satisfaction to its clients - retailers, consumers and utility providers. We look forward to working with its management team to continue the company’s growth journey.”
Ernst & Young LLP acted as lead financial adviser and Mills & Reeve LLP as legal adviser to PayPoint on the sale.
Except as disclosed above, there has been no significant change affecting any matter contained in the announcement of 21 October 2020 and no other significant new matter has arisen since that announcement which would require disclosure.
*The sale includes PayZone SA, which was merged with PayPoint Services SRL on 27 March 2021
For further information please contact:
PayPoint Plc Finsbury
01707 600 300 0207 251 3801
Nick Wiles, Chief Executive (Mobile: 07768 636801 Rollo Head
Alan Dale, Finance Director (Mobile: 07778 043962) Nidaa Lone
For tens of thousands of businesses and their customers, we make life and payments more convenient.
For retailers, we offer innovative and time-saving technology that empowers them to achieve higher footfall and increased spend so they can grow their businesses profitably. Our innovative retail services platform, PayPoint One, is now live in over 17,000 shops in the UK and offers everything a modern convenience store needs. More broadly, we also provide card payments services to thousands of growing businesses across the food services, garage and hospitality sectors. Our technology helps companies to serve customers quickly, improve business efficiency and modernise their operations.
For clients of all sizes, we also provide market-leading payments technologies without the need for capital investment. Our seamlessly integrated omnichannel solution – MultiPay – is a one-stop shop for digital and other customer payments, via any channel and on any device.
Together, these solutions help millions of consumers to control their household finances, make essential payments and access services like cash withdrawals, eMoney and parcel collections and drop-offs. Our UK network of more than 27,700 stores is bigger than all banks, supermarkets and Post Offices together, putting us at the heart of communities nationwide.
ABOUT INNOVA CAPITAL
Innova Capital is an independent private equity advisor, operating from Poland and investing in majority buyouts in mid-sized enterprises with activities in Central and Eastern Europe. From its the inception in 1994, Innova Capital has invested close to EUR 1 billion in almost 60 companies located in 10 countries in the region. Innova was recognized by the Polish Private Equity and Venture Capital Association (PSIK) as PE Management Firm of the Year 2019.