Acquisition of Pay Store SRL
15 May 2007
PayPoint announces acquisition of Romanian mobile pre-pay distributor
PayPoint plc, the cash and internet payments group, announces that it
has completed the acquisition of Pay Store SRL, a leading independent
Romanian mobile pre-pay distribution company for Euro 15.5 million in
cash. There is the potential for a price adjustment, up or down, of
Euro 1.1 million subject to performance over the year following
acquisition. The existing management and other employees are being
retained and will be supplemented by employees from the UK and other
local recruitment. The selling shareholder is a subsidiary of RTC
Holding BV, a large privately-owned holding company whose controlling
shareholder is Mr. Radu Octavian.
Pay Store distributes mobile air-time, using both scratch cards and
electronic top-ups through an expanding and profitable network of
some 4,000 convenience retailers equipped with electronic terminals
provided by Pay Store and a further 2,000 convenience retailers which
sell scratch cards only. PayPoint will invest to develop a national
branded bill payment offer.
The acquisition of Pay Store represents PayPoint's first
international expansion as a listed company, and allows PayPoint to
export its payment expertise into a high growth economy with an
emerging payments market.
Dominic Taylor, Chief Executive of PayPoint, said: "I am very pleased
to announce the acquisition of Pay Store which provides us with a
foothold in the rapidly expanding Romanian market. We intend to
extend the existing distribution channels to take advantage of
migration of mobile airtime from scratch cards to electronic
top-ups. In addition, we intend to roll out a branded bill payment
service for the 97% of householders who pay in cash, providing
convenient retail outlets close to where they live or work. This
acquisition is in accordance with our strategy to replicate our UK
model in other markets and provides a sound base for future growth."
- Ends -
For more information please contact:
Finsbury 020 7251 3801
Rollo Head
Don Hunter
---END OF MESSAGE---
Latest directors dealings
- 23 minutes ago Smith & Nephew
- 42 minutes ago Greencoat UK Wind
- 57 minutes ago Lloyds Banking Group
- 1 hour ago BP
- 1 hour ago Secure Trust Bank