Paypoint plc (LON:PAY) announces completion of the disposal of its Romanian business, PayPoint Services SRL, to private equity firm Innova Capital, 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, which was initially announced in October 2020, is consistent with PayPoint’s focus on its key strategic priorities and the delivery of enhanced growth and value in its core UK markets.

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.

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.