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Oct 21, 2020 17:34 EEST
BUCHAREST (Romania), October 21 (SeeNews) – UK-based payment solutions provider PayPoint said on Wednesday it has signed an agreement to sell its Romanian business to CEE-focused private equity firm Innova Capital for some 47 million British pounds ($61 million/ 52 million euro).
"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 said in a regulatory announcement.
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The deal is subject to competition and regulatory approvals, as well as other conditions precedent, and therefore completion is anticipated to take place on March 31, 2021.
The 47 million British pounds cash consideration is based on current exchange rates on a debt free cash free basis, subject to a net working capital adjustment on completion, the company said.
PayPoint has been operating in Romania since 2007 through PayPoint Services SRL and PayZone SA, partnering-up with local retailers through around 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 March 31 2020, PayPoint Romania delivered gross revenue of 69.7 million British pounds and a profit before tax of 6.8 million pounds. The gross assets of PayPoint Romania at the end of March 2020 totalled 48.5 million British pounds.
"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," PayPoint CEO Nick Wiles said.
Innova Capital is a mid-market private equity firm in Central Europe. Founded in 1994, Innova raised the first major CEE fund comprising entirely private capital. Since then Innova has invested almost 500 million euro, in 40 companies, across ten countries in the region.
PayPoint is a holding company which provides specialist consumer payment, and other services and products, transaction processing and settlement.
(1British pound = 1.1019 euro)
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