PayPoint, a UK agency which processes in-store invoice funds, has introduced its plan to execute a double acquisition price £70 million.
One of many soon-to-be-acquired entities is Merseyside-based card funds enterprise, Handepay, which processes £3 billion yearly.
The opposite is Service provider Leases, a supplier of fee terminal finance, which shares the identical deal with as Handepay.
Logic behind the acquisitions
The goal of the deal is to create a nationwide card funds enterprise with a community of greater than 30,000 SMEs. Therefore, boosting PayPoint’s presence within the SME sector.
It needs to broaden into groceries, auto-trade, clothes, family items and hospitality sectors.
PayPoint at present boasts a 9,000-customer robust card fee property. The agency just lately introduced the sale of its Romanian arm to Innova Capital. It needs to speed up its progress within the UK card market with these acquisitions.
With a purpose to purchase these companies off a consortium of personal traders, PayPoint has prolonged its present financing facility from £75 million to £95 million.
Nick Wiles, PayPoint’s CEO, says Handepay has “delivered a resilient efficiency via COVID-19”.
The acquirer praises Handepay buyer base “breadth”. In addition to its “robust restoration of energetic retailers after the primary lockdown”, and its “proactive plan in response to the latest nationwide restrictions”.
How the acquisition will work
Handepay’s chief industrial officer, Mark Latham, will be part of PayPoint’s government board as its card providers director. Latham will subsequently head up the mixed playing cards portfolio.
Ian Kennedy, Handepay’s gross sales director, will lead gross sales for each PayPoint and Handepay. Kennedy will report into Ben Ford, PayPoint’s retail providers director.
Andy Peake, Handepay’s CEO, will stay in put up till the acquisitions’ completion. After which, he’ll act as a guide to PayPoint.
“The entire group are excited to be becoming a member of the PayPoint Group and benefiting from the dimensions, experience and market management that they’ve in-built omni-channel funds and know-how over the past 24 years,” says Peake.
PwC acted as lead company finance adviser on the offers.