Grovepoint picks up Duke Street's Payzone

Grovepoint and Kahn are understood to have invested a total of £35m in this all-equity deal.

The investment duo stated they will focus on improving Payzone's technology in order to transform and grow the company. New technology will focus on improving in-store efficiency and developing its range of services.

Previous funding
Duke Street acquired a 69% stake of Payzone in late-2009 in a deal worth €104m. That deal saw Duke Street wipe out former investor Balderton Capital's interest in the AIM-listed company. The transaction saw Payzone de-list from the exchange, with Duke Street investing €45m for its majority stake, with lenders BNP Paribas, Rabobank, AIB, Bank of Scotland, RBS and Abbey National taking 16%, according to unquote" data.

In March 2015, Duke Street sold Payzone's Ireland operations to Carlyle Cardinal Ireland in a deal worth between €40-50m. Prior to that, in August 2013, Payzone sold off subsidiary Cashzone to US-based ATM business Cardtronics for £107.5m.

Company
Headquartered in Northwich, Cheshire, Payzone operates a network of cash machines and payment terminals. The company claims to connect more than 15,000 local convenience retailers to service providers including utility companies, mobile network operators, local transport authorities and financial services. The company also provides card acceptance terminals, enabling credit and debit card payments to retailers.

Founded in 1989, Payzone employs 150 people.

People
Following the transaction, Payzone will be led by newly appointed CEO Clive Kahn, who was previously CEO of Travelex. Clive Berelowitz and Gary Narunsky worked on the deal for Grovepoint.

Advisers
Equity – Berwin Leighton Paisner (Legal).

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