Duke Street acquires Payzone in €104m restructuring deal

Duke Street has acquired a 69% stake in AIM-listed payment network Payzone Group as part of a €104m restructuring deal that will see the value of existing shareholder Balderton Capital's stake wiped out.

Duke Street will invest €45m for the majority stake, while Payzone's existing lenders, which include AIB, Bank of Scotland, RBS and Abbey National, will take a 16% holding. In exchange for this, the company's debt will be reduced from approximately €300m to €77m. Seven members of senior management, led by CEO Mike Maloney, will hold the balance of the equity.

The Payzone Group is the result of the 2007 merger of Irish e-payments group Alphyra and UK ATM operator Cardpoint. Alphyra, now known as Payzone, manages terminal networks in the UK, Ireland, Sweden, Greece and Romania, which process a variety of electronic transactions. Main services include mobile phone top-up, bill payment solutions, electronic gift vouchers and EFT processing. The Cashzone business formerly known as Cardpoint, deploys branded independent ATMs in the convenience sector in the UK and Germany.

Since the merger, the group has had to manage a heavy debt burden, which has led to severe staff cuts and the sell-off of international assets. The restructuring will help safeguard 500 jobs across the countries Payzone operates.

The company will de-list off AIM following the deal's completion.