AIB Group PLC AIB forms Joint Venture to acquire Payzone (6006W)
18 April 2019 - 4:00PM
UK Regulatory
TIDMAIBG
RNS Number : 6006W
AIB Group PLC
18 April 2019
EMBARGO 7am 18 April 2019
AIB FORMS Joint venture to Acquire Payzone
-- Acquisition of Payzone - Ireland's largest consumer payments network
-- Enhanced fintech capability to strengthen AIB's position as
Ireland's leading digitally-enabled bank
-- Opportunity to provide more customer choice and convenience in post PSD2/Open Banking economy
AIB Group plc ("AIB") is pleased to announce that it has formed
a new joint venture with First Data Corporation ("FDC") (the "Joint
Venture") to acquire 95.9% of Payzone, a leading Irish fintech
payments business. The Joint Venture, which will be 75% owned by
AIB and 25% owned by FDC, will acquire the ownership interest in
Payzone from existing shareholders including Carlyle Cardinal
Ireland Fund for an enterprise value of up to EUR100 million.
Payzone is a leading branded provider of specialised payment
services in Ireland facilitating consumer payments by cash, card
and card-not-present for every day consumer needs. Payzone has a
strong track record of delivering innovation and new product
development and has a suite of online and mobile payment solutions
servicing in excess of 300,000 registered consumers in over 7,000
retail outlets throughout Ireland. Payzone will continue to be led
by CEO, Jim Deignan, and CFO, Nigel Bell, who will remain as
shareholders in the business.
For the year ended 30 September 2018, Semeral Limited
("Semeral"), the holding company of Payzone reported EBITDA(1)
before exceptional items of EUR8.3 million and gross assets of
EUR59.0 million. The initial cash consideration being paid by the
Joint Venture for the 95.9% stake of Payzone is c. EUR61 million,
which excludes expected net debt(2) of approximately EUR25 million
which will be settled by the Joint Venture on completion.
Additionally there is an amount of c. EUR11 million deferred
consideration, contingent on the achievement of certain conditions.
A mechanism has also been agreed for the Joint Venture to acquire
the remaining 4.1% of Semeral which is held by the Payzone
management team.
The proposed acquisition is consistent with AIB's strategy to
make selective investments to evolve our customer service and
product proposition in our core market. It will bring significant
fintech capability to AIB and will further strengthen our digital
agenda in a post PSD2/Open Banking economy. The expected return on
investment comfortably exceeds AIB's cost of capital.
Colin Hunt, Chief Executive Officer of AIB, said:
"For AIB, this transaction means acquiring significant fintech
capability and Payzone's substantial payments footprint in Ireland.
This will allow AIB to continue to evolve and enhance our customer
offering, enable us to pioneer digital ecosystem products and
services and represents growth potential. We are delighted to
partner again with First Data Corporation in setting up this new
joint venture and look forward to working with Payzone management
to further build on their success."
Completion of the Joint Venture and the acquisition is
conditional on the satisfaction of customary conditions including
competition clearance.
- ENDS-
(1) Earnings before interest, tax, depreciation and amortisation
(EBITDA). In the year ended 30 Sep 2018, Semeral reported a loss
before tax of EUR0.2 million having incurred exceptional items of
EUR0.8 million.
(2) Including shareholder loans.
For further information, please contact:
Niamh Hore / Janet McConkey Stephen O'Shea / Paddy McDonnell
Investor Relations Media Relations
AIB Group plc AIB Group plc
Dublin Dublin
Tel: +353-1-6411817 / +353-1-6418974 Tel: +353-1-7720456 / +353-1-6412869
email: niamh.a.hore@aib.ie email: stephen.p.o'shea@aib.ie
janet.e.mcconkey@aib.ie paddy.x.mcdonnell@aib.ie
Forward Looking Statements
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
business of AIB Group and certain of the plans and objectives of
the Group. These forward-looking statements can be identified by
the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as
'aim', 'anticipate', 'target', ' expect', 'estimate', 'intend',
'plan', 'goal', 'believe', 'may', 'could', 'will', 'seek',
'continue', 'should', 'assume', or other words of similar meaning.
Examples of forward-looking statements include, among others,
statements regarding the Group's future financial position, capital
structure, Government shareholding in the Group, income growth,
loan losses, business strategy, projected costs, capital ratios,
estimates of capital expenditures, and plans and objectives for
future operations. Because such statements are inherently subject
to risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward-looking
information. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These are set out in the 'Principal risks and
uncertainties' on pages 62 to 68 of the Annual Financial Report
2018. In addition to matters relating to the Group's business,
future performance will be impacted by Irish, UK and wider European
and global economic and financial market considerations. Any
forward-looking statements made by or on behalf of the Group speak
only as of the date they are made. The Group cautions that the list
of important factors on pages 62 to 68 of the Annual Financial
Report 2018 is not exhaustive. Investors and others should
carefully consider the foregoing factors and other uncertainties
and events when making an investment decision based on any
forward-looking statement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
JVEEVLBFKZFZBBB
(END) Dow Jones Newswires
April 18, 2019 02:00 ET (06:00 GMT)
Aib (LSE:AIBG)
Historical Stock Chart
From Apr 2024 to May 2024
Aib (LSE:AIBG)
Historical Stock Chart
From May 2023 to May 2024