PayPoint has reached an agreement to acquire leading gifting and engagement company Appreciate Group.
Under the terms of the acquisition, Appreciate Group shareholders will receive 33 pence in cash and 0.0190 new PayPoint shares for each Appreciate Group share.
Based on the closing price of a PayPoint share of 580 pence on 4 November, the last business day prior to the date of the acquisition announcement, the deal values each Appreciate Group share at 44 pence and the entire ordinary share capital of the company at approximately £83 million on a fully diluted basis.
Following completion of the acquisition, Appreciate Group shareholders will hold approximately 5 per cent of the enlarged issued share capital of PayPoint.
PayPoint has last year secured a partnership with to Appreciate Group offer its Love2Shop e-Gift Cards through PayPoint's network of retailer partner stores across the country.
Commenting on the Acquisition, Nick Wiles, Chief Executive of PayPoint, said: "The PayPoint board believe 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.
“Appreciate Group brings a well-established technology platform, a strong customer base, a network of popular brand partners and significant headroom for growth across the UK consumer and corporate gifting markets which is valued at more than £8bn in the UK. The acquisition will strengthen our digital payments offering and create an enhanced retail proposition across our partner network, including more than 28,000 convenience stores, delivering additional growth opportunities for the enlarged Group.”
Guy Parsons, executive chairman of Appreciate Group, added: “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.
“We believe that all three segments of the Wider Appreciate Group's business can prosper under PayPoint's ownership given PayPoint's capabilities, and that the Acquisition represents a good opportunity for all our stakeholders to benefit from both the immediate cash consideration and the potential future value creation and enhanced capabilities to Appreciate Group's consumer and corporate clients arising as a result of the combination of the businesses.”
