AIB joins First Data in €75m Payzone bid
AIB has formed a joint venture (JV) with First Data to buy 95.9pc of fintech payments group Payzone.
The JV, which will be 75pc owned by AIB and 25pc owned by First Data, will acquire the ownership interest in Payzone for an enterprise value of up to €100m.
The initial cash being paid for the group is €61m, which excludes expected net debt of about €25m that will be settled by the joint venture on completion of the deal.
Additionally, there is around €11m of a deferred consideration, dependent on the achievement of 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 30 September 2018, its holding company reported earnings before interest, taxation, depreciation, and amortisation (before exceptional items) of €8.3m and gross assets of €59m.
It can boast in excess of 300,000 registered consumers in over 7,000 retail outlets throughout the country.
Payzone will continue to be led by its chief executive, Jim Deignan, and chief financial officer, Nigel Bell, who will remain as shareholders in the business. However, it has been agreed that the joint venture will acquire the remaining 4.1pc in the future.