Retail payments platform, PayPoint is exiting Romania by selling all its businesses in the country to Innova Capital for around £47 million (around $61.14 million) on a debt-free cash-free basis.
Announced on Wednesday, PayPoint will sell its two Romanian arms, PayPoint Services SRL and PayZone SA.
The step was taken so that PayPoint can focus on its priorities on the key United Kingdom market. The company is considering enhancing its UK business and will invest the proceeds from the acquisition there.
“Consistent with our strategic priorities, we are pleased to have agreed the sale of PayPoint Romania,” PayPoint CEO, Nick Wiles said. “We have decided to sell the Romanian business to focus on our core UK markets and the delivery of our strategic priorities for future growth in these markets. We believe that Innova is the right owner to take the business forward, and we wish PayPoint Romania and Innova well for the future.”
Exiting a Profitable Business
PayPoint entered Romania in 2007 and established a strong network of its retail payments business in the country. According to the company, it partnered with local retailers through around 19,000 sites and was enabling consumers to make cash bill payments, money transfers, road tax payments, and mobile phone top-ups.
The business also performed impressively and generated £69.7 million in revenue for FY2020, ending on March 31, with an adjusted EBITDA of £7.3 million and a pre-tax profit of £6.8 million.
The two Romanian wings of PayPoint had a gross asset of £48.5 million till the ending of the last financial year.
“The Romanian business has been part of the Group for 13 years, and I would like to thank the Romanian management team and employees for their contribution to PayPoint over this time,” Wiles added.