PayPoint to Acquire Appreciate Group to Step into the UK Market

The retail payments platform PayPoint announced that it will acquire the entire issued and to be issued share capital of Appreciate Group.

Immediately following completion of the Acquisition, existing PayPoint Shareholders will hold approximately 95% and Appreciate Group Shareholders will hold approximately 5% of the enlarged issued share capital of PayPoint.

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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."

Commenting on the Acquisition, Guy Parsons, Executive Chairman of Appreciate Group, said:"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."