PayPoint Goals UK Growth with £83M Respect Group Acquisition Deal

Respect Group is Acquired by PayPoint for £83 million.
PayPoint (LON-PAY), a retail funds supplier with its headquarters located in London, has announced that it has acquired Respect Group, a gifting and engagement company, for a sum of £83 million. The purchase of Respect Group’s full issued and to-be-issued share capital has been approved by the board of the payment company. For every Respect Group share owned by shareholders, they will get 33 pence plus 0.0190 New PayPoint shares, with a possible dividend of up to 0.8 pence per share.
PayPoint CEO Nick Wiles stated: “The PayPoint Board feels that the Respect Group acquisition offers a compelling opportunity to acquire a highly complementary business with established offerings in the corporate and consumer reward card and voucher sector as well as prepayment savings.” The UK consumer and business gifting industries have a lot of space to develop because to the services and brand partners offered by Respect Group.”
He went on to say that the acquisition might focus on three main areas: enhanced consumer gifting network for the Love2shop brand, full-service gifting offering, employee rewards and benefits to Respect Group’s corporate customers, and prepayment savings through Park Christmas Savings.
Prior to that, PayPoint sold its cash-free and debt-free Romanian operations for about £47 million in 2020. The company then emphasised that it was focused on the UK market and stated that it intended to use the money for acquisitions in the UK.
“PayPoint’s offer represents an attractive premium for Respect Group Shareholders, providing an opportunity to exit the majority of their shareholdings for cash, while participating in the potential upside of the combined Respect Group and PayPoint businesses over the long term,” said Man Parsons, Executive Chair of Respect Group, in response to the acquisition.
The move has not gone down well with traders, though, as evidenced by the 7.4% drop in PayPoint’s share price at the time of writing.