Paypoint has inked a deal to sell its Romanian division to Innova Capital for £47m, as the payments operator seeks to streamline its UK business in the wake of the pandemic.
In a notice to the stock exchange, the London-listed firm said it had reached an agreement with Innova to offload Paypoint Services and Payzone, which the firm launched in Romania in 2007, in an all-cash consideration.
The sale, overseen by EY, is subject to competition and regulatory approvals, with the deal expected to be signed off by April next year.
Paypoint’s Romanian arm has proved a strong note for the firm over the past few years, delivering revenue of £69.7m and profit before tax of £6.8m in the 12 months to the end of March.
The payments firm said it will invest Paypoint Romania’s gross assets, which stood at £48.5m at the end of the last financial year, into its British operations, as part of its “focus on its key strategic priorities and the delivery of enhanced growth and value in its core UK markets”.
“Consistent with our strategic priorities, we are pleased to have agreed the sale of Paypoint Romania,” said chief executive Nick Wiles.
“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. We will update on the sale in due course.”