AIB in joint venture buyout of payments group Payzone
Allied Irish Banks (AIB) has formed a joint venture (JV) with First Data to buy 95.9% of fintech payments group Payzone.
The JV, which will be 75% owned by AIB and 25% owned by First Data, will acquire the ownership interest in Payzone for an enterprise value of up to €100m (£86.4m).
The initial cash being paid for the group is €61m (£52.7m), which excludes expected net debt of about €25m (£21.6m) that will be settled by the joint venture on completion of the deal.
Additionally, there is around €11m (£9.5m) of a deferred consideration, which is dependent on certain conditions. Colin Hunt, chief executive 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."
Payzone, whose shareholders include Carlyle Cardinal Ireland Fund, specialises in payment services in Ireland facilitating consumer payments by cash, card and card-not-present transactions.
For the year ended September 30, 2018, its holding company reported earnings before interest, taxation, depreciation, and amortisation (before exceptional items) of €8.3m (£7.2m) and gross assets of €59m (£51m).
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