The Isle of Man-based online gambling company GVC Holdings announced that it was focused on the disposal of its payment processing subsidiary which currently operates under the Kalixa Group brand. The gaming and sports betting company first shared that in its interim financial statements which were issued on September 20th, 2016.
The Chief Executive Officer of GVC Holdings Kenneth Alexander commented on the announcement, saying that the disposal came in line with the company’s plans that had been revealed earlier in 2016. Mr. Alexander shared that GVC payments would still be processed by Kalixa, but after the sale the brand would get the chance to build a larger payment service business under a new ownership which would be focused on payments processing as a major activity.
Today, the company published an official statement that it has reached an agreement with the Singapore-headquartered global payment operator and investment firm Senjō Group Pte. Ltd which is to acquire the Kalixa Group. The prize announced amounts to €29 million that are to become payable at time when the takeover deal is finalised. The total consideration that is to be received by GVC Holdings is estimated to €35.5 million.
The transaction is subjected to a few domestic and international approvals of competent regulatory authorities. The deal is expected to be closed over the first quarter of 2017.
The wallet business that is currently run by a subsidiary of the brand – Kalixa Pay Limited – is to be excluded of the deal. In addition, GVC Holdings announced that before the sale is finalised, an amount equal to the free cash is planned to be retained by GVC by the way of dividend. The amount is estimated to €2.1 million. The proceeds of the subsidiary’s disposal is to be used by GVC in order for the latter to reduce its net debt. On the other hand, the company shared its belief that the the Group earnings before interest, taxes, depreciation and amortisation would not be affected in any way by the sales’ completion.
Currently, the brand offers aggregation, card acceptance acquiring and payment processing services not only to GVC Holdings, but to other corporates as well. The payment processing services activities will be kept by Kalixa Group after the completion of the deal.
- Author
Olivia Cole
