GVC has agreed to sell its payments processing business Kalixa Group to Singapore-based global payments operator Senjō Group for a total consideration of €29.0 million payable in cash on completion.
Prior to completion, an amount equal to the free cash (over and above €2.1 million) in the Kalixa Group will be retained by GVC by way of dividend. The sale proceeds will be applied towards reducing GVC’s net debt, while the sale and run-down of Kalixa Pay will have a neutral effect on the group’s EBITDA.
The sale does not include the wallet business currently operated by Kalixa Pay Limited, a subsidiary within the Kalixa Group, which will be closed by GVC post-completion. It is subject to domestic and international regulatory approval, but is expected to be completed during the first quarter of 2017.
Kenneth Alexander, GVC Holdings CEO, said: “We are pleased to announce the sale of Kalixa in line with our plans announced earlier in the year. Post-sale Kalixa will continue to process payments for us and our customers, but now with the opportunity to build a larger payment services business under new ownership which has payments as a core activity.”
GVC Holdings PLC had announced its intention to sell the payments processing business as part of its interim financial statement on September 20.
The Kalixa Group provides card acceptance acquiring, aggregation, and payment processing services to corporate companies. The Kalixa Group will continue to provide payment processing services to GVC post-completion under an existing contract.
For the year ended 31 December 2015, the Kalixa Group generated revenue of €22.7 million and a loss before interest and tax of €7.0 million. As at 30 September 2016, the Kalixa Group had gross assets of €80.7 million, and a net book value of €41.9 million which included €19.2 million of intangible assets.