TIDMAPP

RNS Number : 4259Q

Appreciate Group PLC

28 June 2022

28 June 2022

Appreciate Group plc

Acquisition of MBL Holdco Ltd

MBL platform advances Group's technology plans by 18 months and accelerates Corporate growth opportunities

Appreciate Group (the 'Group'), the UK's leading multi-retailer redemption product provider to Corporate and Consumer markets, is pleased to announce it has acquired the entire share capital of MBL Holdco Ltd, a North East-based gift card technology provider to UK businesses and consumers, from Redu Group Ltd.

MBL specialises in offerings which are complementary to Appreciate's fast-growing Corporate business, including:

   --    An end-to-end gift card processing and management service for retailers 

-- A digital gift card mall enabling B2C and B2B customers to purchase gift cards directly from a catalogue of over 160 high-street retailers

-- A SaaS offering, which is a fully white-labelled eCommerce platform, enabling businesses to launch their own fully functional gift card websites

The acquisition was completed on 24 June 2022 for an initial cash consideration of GBP1.65m, with a further GBP1.8m deferred for 12 months dependent on certain criteria being met. The initial cash consideration is being met from Appreciate's existing financial resources. The acquired business operationally will be self-funded and is expected to be cost-neutral to the Group.

The reasons for, and benefits of, the acquisition are summarised below:

-- MBL's market-leading scalable platform capabilities strengthen the Group's technology infrastructure, and thereby accelerate its technology roadmap by approximately 18 months.

-- Leveraging MBL's platform provides immediate commercial opportunities, whilst enabling the Group to realise growth opportunities in its plans earlier.

-- MBL's offerings support the Group's aim to grow its SaaS solutions, outsourced gift card programmes and bespoke white-labelling of gift card websites for Corporate clients - all key areas in its medium-term plans to drive further growth in its Corporate business.

-- Integrating MBL's platform with the Group's existing infrastructure provides cross-sell benefits and cost synergies, as well as opportunities to improve front-end architecture and customer journeys - making interactions easier for customers and our products and services more competitive.

-- The MBL client base complements the Group's existing Corporate and Retail client base and will offer additional opportunities to extend and develop Appreciate's services within these groups.

Ian O'Doherty, Chief Executive Officer, at Appreciate Group commented:

"The acquisition of MBL rapidly accelerates the Group's technology plans and immediately enhances our capabilities, particularly in our Corporate business, where we are already enjoying increased customer demand for our products. The MBL platform will help us improve the competitiveness of our offerings and bring forward opportunities that can deliver higher levels of growth. We look forward to working with the MBL team to enhance our proposition for our customers and create value for our shareholders."

Adam Hobbs, Head of Retail Partnerships, at MBL, said:

"MBL becoming part of Appreciate Group is positive news for customers and partners of both organisations. Both MBL and Appreciate Group see clear opportunities to bring together each other's technology and market position to enhance the services and products they provide. The team at MBL is looking forward to working with Appreciate Group to realise its plans."

 
 Appreciate Group        Liberum                MHP Communications 
  plc                     (NOMAD and broker) 
 Ian O'Doherty, CEO      Richard Crawley        Reg Hoare 
  Tim Clancy, CFO         Jamie Richards         Katie Hunt 
                                                 Charles Hirst 
 Andy Hammerton, Head 
  of Corporate Affairs     Tel: 020 3100 2222     Tel: 020 3128 8193 
                                                  Email: appreciategroup@mhpc.com 
  Tel: 0151 653 1700 
 

Notes to Editors:

Appreciate Group is one of the UK's leading gifting, pre-payment and engagement companies, and experts at creating joyful experiences and connecting people to the things in life they enjoy the most.

Everything Appreciate Group does is focused on creating more joy in the world, and it is proud to be trusted to help its customers create moments they can treasure and remember, whether they are giving, celebrating or rewarding.

Appreciate Group is a financial services business with a wide portfolio of brands which provide solutions for its consumer and corporate customers. Its consumer-facing brands meet a range of prepayment and gifting needs, while its business products help corporate customers reward and recognise their employees and clients.

Appreciate Group is home to many of the country's most-loved gifting, pre-payment and engagement solutions including Park Christmas Savings, highstreetvouchers.com and Love2shop, and we are fast-becoming the home of digital innovation in gifting.

Whether it's saving towards the perfect family Christmas or celebrating with gift cards and vouchers, we create and supply products that millions of people trust when it comes to giving and receiving with family, friends or colleagues.

Park Christmas Savings: As the UK's largest family Christmas savings club, Park Christmas Savings has helped over three million families budget for Christmas on a short-term or year-round basis.

Love2shop: Love2shop offers gift cards and gift vouchers available to spend at stores and attractions across the UK. They are also used through Appreciate Business Services providing corporate partners with incentives and rewards for their employees and clients.

Appreciate Group plc's shares are traded on AIM, a market operated by the London Stock Exchange.

The Park Prepayments Protection Trust is designed to increase protection for customers' prepayments. The Trust has three directors, two of whom are independent of Appreciate. Details of the trust are set out here: https://www.getpark.co.uk/CORPORATE/declaration.pdf

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQEASKPAAEAEEA

(END) Dow Jones Newswires

June 28, 2022 02:01 ET (06:01 GMT)

Appreciate (LSE:PARK)
Historical Stock Chart
From Jul 2022 to Aug 2022 Click Here for more Appreciate Charts.
Appreciate (LSE:PARK)
Historical Stock Chart
From Aug 2021 to Aug 2022 Click Here for more Appreciate Charts.