London-based retail payments provider PayPoint revealed on Monday that it has agreed to acquire Appreciate Group, a gifting and engagement company, in an £83 million deal.
PayPoint’ board of directors approved the acquisition of the entire issued and to-be-issued share capital of Appreciate Group. According to the terms of the deal, each Appreciate Group share is valued at at 44 pence.
Under the conditions of the acquisition, Appreciate Group shareholders will receive 33 pence and 0.0190 New PayPoint shares for each Appreciate Group share. Moreover, the Group’s shareholders will receive and retain a dividend of up to 0.8 pence per share.
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.
Wiles further said that Appreciate Group brings a “significant headroom for growth” in the consumer and corporate gifting markets in the UK, which is valued at over £8 billion.
