PayPoint completes sale of Romanian business to Innova Capital for 56 million Euro

UK-based payment solutions provider PayPoint said that it has completed the disposal of Romanian business to CEE-focused private equity firm Innova Capital for 56 million Euro.

The sale is consistent with PayPoint’s focus on its key strategic priorities and the delivery of enhanced growth and value in its core UK markets, PayPoint said in a press release.

“Consistent with the step change in our UK-focused strategy, we are pleased to have completed the sale of PayPoint Romania,” PayPoint Plc CEO Nick Wiles said.

The deal, first announced in October by PayPoint, was sealed after receiving regulatory and other customary approvals.

“Our goal is now to bring our sector experience and help its expansion into new services which will introduce an even higher level of customer satisfaction to its clients – retailers, consumers and utility providers,” Innova Capital senior partner Krzysztof Kulig said.

On Tuesday, the European Bank for Reconstruction and Development (EBRD) said that together with a parallel lender it is providing a senior secured loan of up to 25 million euro ($29.4 million) to finance the acquisition of Paypoint Romania by Innova Capital, and thereafter support the company’s initiatives to digitalise its consumer payments services.

PayPoint has been operating in Romania since 2007 through PayPoint Services SRL and PayZone SA, partnering-up with local retailers through around 19,000 sites to enable people to make cash bill payments, money transfers, road tax payments and mobile phone top-ups.

In the financial year ended March 31 2020, PayPoint Romania delivered gross revenue of 69.7 million British pounds and a profit before tax of 6.8 million pounds. The gross assets of PayPoint Romania at the end of March 2020 totalled 48.5 million British pounds.

Innova Capital is a mid-market private equity firm in Central Europe. Founded in 1994, Innova raised the first major CEE fund comprising entirely private capital. Since then Innova has invested almost 500 million euro, in 40 companies, across ten countries in the region.

PayPoint is a holding company which provides specialist consumer payment, and other services and products, transaction processing and settlement.