PayPoint acquires Romanian mobile pre-pay distributor Pay Store
15 May 2007 | 988 views | 0
PayPoint plc, the cash and internet payments group, announces that it has completed the acquisition of Pay Store SRL, a leading independent Romanian mobile pre-pay distribution company for Euro 15.5 million in cash.
There is the potential for a price adjustment, up or down, of Euro 1.1 million subject to performance over the year following acquisition. The existing management and other employees are being retained and will be supplemented by employees from the UK and other local recruitment. The selling shareholder is a subsidiary of RTC Holding BV, a large privately-owned holding company whose controlling shareholder is Mr. Radu Octavian.
Pay Store distributes mobile air-time, using both scratch cards and electronic top-ups through an expanding and profitable network of some 4,000 convenience retailers equipped with electronic terminals provided by Pay Store and a further 2,000 convenience retailers which sell scratch cards only. PayPoint will invest to develop a national branded bill payment offer.
The acquisition of Pay Store represents PayPoint's first international expansion as a listed company, and allows PayPoint to export its payment expertise into a high growth economy with an emerging payments market.
Dominic Taylor, Chief Executive of PayPoint, said: "I am very pleased to announce the acquisition of Pay Store which provides us with a foothold in the rapidly expanding Romanian market. We intend to extend the existing distribution channels to take advantage of migration of mobile airtime from scratch cards to electronic top-ups.
In addition, we intend to roll out a branded bill payment service for the 97% of householders who pay in cash, providing convenient retail outlets close to where they live or work. This acquisition is in accordance with our strategy to replicate our UK model in other markets and provides a sound base for future growth."