October 21, 2020 | AtoZ Markets – Retail payment platform PayPoint is leaving Romania. The company is selling its entire business in the country to Innova Capital, for approximately £ 47 million (approximately $ 61 million), according to a news release.
PayPoint sells Romania business to focus on its key British market
PayPoint has announced this Wednesday that it will sell its two Romanian divisions, PayPoint Services SRL and PayZone SA. Thus, the company plans to focus on the key British market. The proceeds from the sale of the Romanian subsidiaries will go to the development of British business.
“In line with our strategic priorities, we have agreed to sell PayPoint Romania,” said PayPoint CEO Nick Wiles. “We decided to sell the Romanian business in order to focus on our main UK markets and to realize our strategic priorities in these markets. We believe that Innova can continue to grow our business in Romania and wish PayPoint Romania and Innova every success in the future. ”
PayPoint is exiting a profitable business
PayPoint moved to Romania in 2007 and has built a strong retail payment network in the country. According to PayPoint, it has partnered with local retail outlets (about 19,000 websites work with the platform) to enable consumers to pay bills, transfer money, pay taxes and top up their mobile phone bills.
The business also posted impressive financial results, with revenues of £69.7m in fiscal 2020 and EBITDA profit of £ 7.3m. As of the end of the last financial year, two Romanian subsidiaries PayPoint's divisions had assets of £48.5 million.
“The Romanian business has been part of the Group for 13 years and I would like to thank the Romanian management and staff for their contributions to PayPoint during this time,” added Wiles.
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