PayPoint Aims UK Expansion with £83M Appreciate Group Acquisition Deal
- The deal came when PayPoint focused on UK expansion.
- The CEO believes the acquisition will bring “significant headroom for growth.”
PayPoint (LON: PAY), a London-headquartered retail payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term provider, announced on Monday its decision to acquire the entirety of Appreciate Group, a gifting and engagement company, in an £83 million deal.
The Board of the payment company approved the acquisition of Appreciate Group’s entire issued and to-be-issued share capital. The terms of the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term value Appreciate Group Share at 44 pence, putting the size of the deal at £83 million.
The shareholders of Appreciate Group will receive 33 pence along with 0.0190 New PayPoint shares for each Appreciate Group share. Furthermore, each Appreciate Group shareholder will receive and retain a dividend of up to 0.8 pence per share.
A Strategic Deal
“The PayPoint Board believes the proposed acquisition of Appreciate Group provides a compelling opportunity to acquire a highly complementary business with well-established offerings in prepayment savings and the corporate and consumer gift card and voucher sector,” said Nick Wiles, the CEO of PayPoint.
Additionally, he believes that the Appreciate Group's offerings and its brand partners provide “significant headroom for growth” in the consumer and corporate gifting markets within the United Kingdom. The acquisition is strategic as it will strengthen PayPoint’s payment offerings.
“The proposed acquisition would jointly target growth in three broad areas: prepayment saving through Park Christmas Savings to support customers with budgeting tools for Christmas and other events; an enlarged full-service offering for gifting, employee rewards and benefits to Appreciate Group’s corporate clients; and an extended consumer gifting network for the Love2shop brand,” Wiles added.
PayPoint sold its Romanian operations in 2020 for around £47 million on a debt-free cash-free basis. At that time, the company highlighted its priorities in the key UK market and even revealed plans to use the proceeds for acquisitions within the UK.
Meanwhile, the investors are critical of the acquisition, which can be inferred from the market performance of publicly-traded PayPoint shares. The price of PayPoint shares decreased by more than 7.4 percent as of press time after the markets opened on Monday.
Commenting on the acquisition, Appreciate Group’s Executive Chair, Guy Parsons, said: “PayPoint’s offer represents an attractive premium for Appreciate Group Shareholders providing an opportunity to exit the majority of their shareholdings for cash, whilst participating in the potential upside of the combined Appreciate Group and PayPoint businesses over the long-term.”
PayPoint (LON: PAY), a London-headquartered retail payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term provider, announced on Monday its decision to acquire the entirety of Appreciate Group, a gifting and engagement company, in an £83 million deal.
The Board of the payment company approved the acquisition of Appreciate Group’s entire issued and to-be-issued share capital. The terms of the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term value Appreciate Group Share at 44 pence, putting the size of the deal at £83 million.
The shareholders of Appreciate Group will receive 33 pence along with 0.0190 New PayPoint shares for each Appreciate Group share. Furthermore, each Appreciate Group shareholder will receive and retain a dividend of up to 0.8 pence per share.
A Strategic Deal
“The PayPoint Board believes the proposed acquisition of Appreciate Group provides a compelling opportunity to acquire a highly complementary business with well-established offerings in prepayment savings and the corporate and consumer gift card and voucher sector,” said Nick Wiles, the CEO of PayPoint.
Additionally, he believes that the Appreciate Group's offerings and its brand partners provide “significant headroom for growth” in the consumer and corporate gifting markets within the United Kingdom. The acquisition is strategic as it will strengthen PayPoint’s payment offerings.
“The proposed acquisition would jointly target growth in three broad areas: prepayment saving through Park Christmas Savings to support customers with budgeting tools for Christmas and other events; an enlarged full-service offering for gifting, employee rewards and benefits to Appreciate Group’s corporate clients; and an extended consumer gifting network for the Love2shop brand,” Wiles added.
PayPoint sold its Romanian operations in 2020 for around £47 million on a debt-free cash-free basis. At that time, the company highlighted its priorities in the key UK market and even revealed plans to use the proceeds for acquisitions within the UK.
Meanwhile, the investors are critical of the acquisition, which can be inferred from the market performance of publicly-traded PayPoint shares. The price of PayPoint shares decreased by more than 7.4 percent as of press time after the markets opened on Monday.
Commenting on the acquisition, Appreciate Group’s Executive Chair, Guy Parsons, said: “PayPoint’s offer represents an attractive premium for Appreciate Group Shareholders providing an opportunity to exit the majority of their shareholdings for cash, whilst participating in the potential upside of the combined Appreciate Group and PayPoint businesses over the long-term.”