LONDON: PayPoint Plc has signed an agreement to sell its Romanian business, PayPoint Services SRL and PayZone SA (PayPoint Romania), to Innova Capital, a news release said.
The cash consideration is expected to be circa £47 million based on current exchange rates on a debt free cash free basis, subject to a net working capital adjustment on completion.
The sale is consistent with PayPoint’s focus on its key strategic priorities and the delivery of enhanced growth and value in its core U.K. markets, which is where the net proceeds will be invested.
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.
The sale is subject to competition and regulatory approvals, as well as other conditions precedent, and therefore completion is anticipated to take place on 31 March 2021. PayPoint plc financial statements for the year ended 31 March 2021 will therefore include a full year’s net profit.
Nick Wiles, Chief Executive Officer of PayPoint plc, said: “Consistent with our strategic priorities, we are pleased to have agreed the sale of PayPoint Romania. The Romanian business has been part of the Group for 13 years and I would like to thank the Romanian management team and employees for their contribution to PayPoint over this time.
“We have decided to sell the Romanian business to focus on our core U.K. markets and the delivery of our strategic priorities for future growth in these markets. We believe that Innova is the right owner to take the business forward and we wish PayPoint Romania and Innova well for the future. We will update on the sale in due course.”
Ernst & Young LLP acted as lead financial adviser and Mills & Reeve LLP as legal adviser to PayPoint on the sale.
PayPoint offers innovative and time-saving technology that empowers convenience retailers in the UK to achieve higher footfall and increased spend so they can grow their businesses profitably. Its innovative retail services platform, PayPoint One, is now live in over 16,000 stores in the UK and offers everything a modern convenience store needs, from parcels and contactless card payments to EPoS and bill payment services.
PayPoint technology helps retailers to serve customers quickly, improve business efficiency and stay connected to their stores from anywhere.
Its UK network of more than 27,500 stores is bigger than all banks, supermarkets and Post Offices together, putting us at the heart of communities nationwide.
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