Paypoint plc (LON:PAY) today announces that it has entered into an agreement to acquire RSM 2000 Ltd, a leading digital payments business.

PayPoint says it is well-placed to take advantage of the trends that have accelerated over the past year due to Covid-19, including the continued shift from cash to digital payments, and the acquisition of RSM 2000 reinforces that position. The UK Direct Debit market continues to expand, with over 4.5 billion payments with an overall value of £1,327 billion made in 2019. Direct Debits are used by 90% of the UK population to pay some or all of their regular bills.

The acquisition will significantly enhance PayPoint’s existing MultiPay digital payments portfolio: bringing Direct Debit capability in-house, adding innovative mobile payment products and enabling reach into new sectors, such as charities, not-for-profit and events. Their innovative EventPay solution provides card terminal hire and connectivity for SMEs attending shows and fayres across the UK – an opportunity of over 30,000 events a year with over 10,000 visitors.

The acquisition is subject to regulatory approvals and, therefore, completion is anticipated to take place in the first quarter of 2021/22 financial year.

Nick Wiles, Chief Executive Officer of PayPoint plc, commented:

“Our acquisition of RSM 2000 is the latest step in the acceleration of our strategic delivery, significantly enhancing our digital payments capability and enabling reach into new sectors, such as charities and events. This strengthens PayPoint’s position further to take advantage of the trends that have accelerated over the past year due to Covid-19, particularly the continued shift from cash to digital payments. I’m delighted to be welcoming the RSM 2000 team to the PayPoint Group, bringing a wealth of expertise from their 20 years in digital payments.”

Nigel Walters, Managing Director of RSM 2000, said:

“I’m incredibly proud of the business we’ve built, providing innovative digital payments solutions to clients in a diverse range of sectors. I believe we’ve found the right home in the PayPoint Group to take us to the next stage of our growth and benefit from the scale, expertise and market leadership that they have built in omni-channel payments and technology over the last 24 years.”

Let’s note that last week, Paypoint announced the completion of the acquisition of Handepay Limited and Merchant Rentals Limited, after receiving regulatory and other customary approvals. The cash consideration for the acquisition is £70 million on a cash free debt free basis, after closing balance sheet adjustments.