Source: Nasdaq GlobeNewswire / 10 Feb 2021 07:00:00 America/New_York
10 February 2021
(“PayPoint” or the “Company”)
PayPoint announces the acquisition of RSM 2000
Significantly enhances digital payments capability and sector reach as part of continued step change in strategic delivery
- Founded in 1999, RSM 2000 provide a wide range of digital payment solutions, including Direct Debit processing, card and text payments and innovative mobile event payment solutions to a significant number of clients across diverse sectors, including charities, not-for-profit organisations and SMEs in the UK
- Enhances PayPoint’s existing MultiPay digital payments portfolio - brings Direct Debit processing and BACS Bureau capability in-house and adds facilities management accreditation enabling management of Direct Debits on behalf of clients
- Enables PayPoint to offer additional digital payment services to existing clients and reach into new sectors, including Text Donation product for charities and EventPay solution to support digital payments within the Events and Live Entertainment Sector
- Combination of RSM 2000’s capability with PayPoint Group’s existing client sales and marketing expertise to accelerate revenue growth in digital payments
- Strong margin business delivering accelerated future growth - £2.1 million gross revenue and adjusted EBITDA of £0.1 million in financial year ended 31 March 2020
- Over 700 clients across a diverse range of sectors with high customer satisfaction (+56 Net Promoter Score)
- Transaction expected to complete in first quarter of 2021/22 financial year, subject to regulatory approvals
PayPoint is pleased to announce that it has signed an agreement to acquire RSM 2000 Ltd (“RSM 2000”), a leading digital payments business providing innovative solutions to a significant number of clients across diverse sectors, including charities, not-for-profit organisations and SMEs in the UK.
PayPoint is well-placed to take advantage of the trends that have accelerated over the past year due to Covid-19, including the continued shift from cash to digital payments, and the acquisition of RSM 2000 reinforces that position. The UK Direct Debit market continues to expand, with over 4.5 billion payments with an overall value of £1,327 billion made in 2019. Direct Debits are used by 90% of the UK population to pay some or all of their regular bills.
The acquisition will significantly enhance PayPoint’s existing MultiPay digital payments portfolio: bringing Direct Debit capability in-house, adding innovative mobile payment products and enabling reach into new sectors, such as charities, not-for-profit and events. Their innovative EventPay solution provides card terminal hire and connectivity for SMEs attending shows and fayres across the UK – an opportunity of over 30,000 events a year with over 10,000 visitors.
Adjusted EBITDA in the financial year ended 31 March 2020 of £0.1 million and profit before tax £0.1 million. The gross assets as of 31 March 2020 were £2.3 million.
The acquisition is subject to regulatory approvals and, therefore, completion is anticipated to take place in the first quarter of 2021/22 financial year.
Nick Wiles, Chief Executive Officer of PayPoint plc, said: “Our acquisition of RSM 2000 is the latest step in the acceleration of our strategic delivery, significantly enhancing our digital payments capability and enabling reach into new sectors, such as charities and events. This strengthens PayPoint’s position further to take advantage of the trends that have accelerated over the past year due to Covid-19, particularly the continued shift from cash to digital payments. I’m delighted to be welcoming the RSM 2000 team to the PayPoint Group, bringing a wealth of expertise from their 20 years in digital payments.”
Nigel Walters, Managing Director of RSM 2000, said: “I’m incredibly proud of the business we’ve built, providing innovative digital payments solutions to clients in a diverse range of sectors. I believe we’ve found the right home in the PayPoint Group to take us to the next stage of our growth and benefit from the scale, expertise and market leadership that they have built in omni-channel payments and technology over the last 24 years.”
Pinsent Masons LLP acted as legal adviser to PayPoint Plc on the acquisition.
For further information please contact:
PayPoint plc Finsbury
01707 600 300 0207 251 3801
Nick Wiles, Chief Executive (Mobile: 07768636801) Rollo Head
Alan Dale, Finance Director (Mobile: 07778043962) Nidaa Lone
For tens of thousands of businesses and their customers, we make life and payments more convenient.
For retailers in the UK and Romania, we offer innovative and time-saving technology that empowers them to achieve higher footfall and increased spend so they can grow their businesses profitably. Our innovative retail services platform, PayPoint One, is now live in over 17,000 shops in the UK and offers everything a modern convenience store needs. More broadly, we also provide card payments services to thousands of growing businesses across the food services, garages and hospitality sectors. Our technology helps companies to serve customers quickly, improve business efficiency and modernise their operations.
For clients of all sizes, we also provide market-leading payments technologies without the need for capital investment. Our seamlessly integrated omnichannel solution – MultiPay – is a one-stop shop for digital and other customer payments, via any channel and on any device.
Together, these solutions help millions of consumers to control their household finances, make essential payments and access services like cash withdrawals, eMoney and parcel collections and drop-offs. Our UK network of more than 27,700 stores is bigger than all banks, supermarkets and Post Offices together, putting us at the heart of communities nationwide.
ABOUT RSM 2000
RSM 2000 are a payment service provider with a wide range of products, who are experienced enough to cope with complex organisations, focussed enough to care about even the smallest client and smart enough to make their services simple and easy to use. They have a solid payments heritage, with expertise gained from over 20 years working with the widest range of businesses, charities and not for profit organisations, to provide payment solutions