Greater Manchester fintech, Pay360, is to be sold to Access PaySuite.
The deal values the Oldham payments business at £150m, but current owner, Capita plc, said it expected to receive around £156m upon completion of the sale.
Pay360 has 2.5k customers across the public and private sectors, offering payment services, including its Pay360 Evolve platform and IncomeAI, an artificial intelligence-led debt management service.
In 2021, the business processed £8.6bn in transaction value across 142 million transactions.
Its gross assets at 30 June 2022 were £63.6m. For the year to 31 December 2021 it generated revenue of £45.8m, EBITDA of £10.5m and profit before tax of £7.1m. During the first half of 2022, the company generated revenue of £27.3m, EBITDA of £5.7m and profit before tax of £3.1m.
The Pay360 senior management team will be transferring with the business.
Capita stated that it was disposing of the company to “reduce indebtedness and provide additional liquidity” and further strengthen its own balance sheet.
“We are pleased to have agreed the sale of Pay360 to Access. We announced our intention to sell Pay360 during our half year results, as part of our strategy to simplify and strengthen Capita,” said Jon Lewis, Capita’s Chief Executive Officer.
“The sale is a great opportunity for the new owners to help Pay360 realise its full potential, and our colleagues at Pay360 will also benefit from the focus that this change of ownership will bring. Capita will utilise the cash proceeds of the sale to benefit our digital offerings for clients and further reduce net debt. The Pay360 senior management team and employees will remain with the business as they transfer to new ownership”
Access PaySuite is part of The Access Group, which is based in Loughborough, with offices around the world, including 7 in the North of England.
The sale is conditional on the approval of Capita’s shareholders.
