PAY Paypoint Plc

 
TIDMPAY 
 
 
   8 April 2021 
 
 
 
   PayPoint Plc 
 
   ("PayPoint") 
 
 
 
 
 
   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 GBP48 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 GBP69.7 million, adjusted 
EBITDA (before non-recurring revenues and costs) of GBP7.3 million and a 
profit before tax of GBP6.8 million. The gross assets of PayPoint 
Romania at 31 March 2020 were GBP48.5 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: 
 
   Enquiries: 
 
 
 
   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 
 
   (Email: Paypoint@finsbury.com) 
 
   ABOUT PAYPOINT 
 
   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. 
 
   https://www.globenewswire.com/Tracker?data=etCwgRrkN5_oTT76KMWvNKdA8lT73vj7PN-X0-Xo_GvhroJcMGWG0nuicbgAdmk4hHhl6NnhDU7SJmbhw1btV10KqC-u_46qfI7qLEEGyos= 
https://innovacap.com/ 
 
 
 
 

(END) Dow Jones Newswires

April 08, 2021 11:24 ET (15:24 GMT)

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