PayPoint, a retail payments company, revealed on Tuesday completing the acquisition of Appreciate Group, a platform for gifting and engagement, for £83 million.
According to the official announcement, PayPoint purchased all of the issued share capital of Appreciate Group. The deal was agreed upon by the boards of both companies in November.
This acquisition is expected to provide PayPoint with significant opportunities for growth in the consumer and corporate gifting markets within the United Kingdom, thanks to Appreciate Group’s offerings and brand partners. The deal is considered a strategic move for PayPoint.
Nick Wiles, Chief Executive Officer of PayPoint, commented:
Work on integration is already underway, with an immediate focus on organisational alignment, building on the strong momentum in both businesses and unlocking commercial revenue enhancements.
The acquisition is expected to be immediately earnings enhancing in FY24 and the Board believes it will deliver attractive returns for shareholders, with the enlarged Group targeting further growth in three broad areas: prepayment saving through Park Christmas Savings to support customers with budgeting tools for Christmas and other events; an enlarged full-service offering for gifting, employee rewards and benefits to Appreciate Group’s corporate clients; and an extended consumer gifting network for the Love2shop brand.
As part of the acquisition agreement, the entire team at Appreciate Group has joined PayPoint. Julian Coghlan, who was the former Interim CEO of Appreciate Group, has joined the Executive Board of PayPoint and will continue to lead Appreciate Group as its Managing Director. Additionally, Talha Ahmed, former Interim Chief Financial Officer of Appreciate Group, has been appointed as Finance Director of the Appreciate business.
