Duke Street's Payzone Group sells Cashzone subsidiary

Ellie Pullen
07 August 2013

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Payzone Group, a consumer payment acceptance network backed by Duke Street, has sold its Cashzone subsidiary to US-based ATM services provider Cardtronics for a total consideration of ТЃ107.5m.

Duke Street currently holds an 80% stake in the Payzone Group. The deal value comprises a £100m purchase price, a £5.9m locked-box adjustment and £1.6m in pre-completion cash payments.

Duke Street plans to divest its entire shareholding in the Payzone Group via a series of disposals, the GP stated, with the sale of Cashzone marking the first step in Duke Street's exit from the business.

The Payzone Group will become debt-free following the sale of Cashzone, according to Duke Street.

Duke Street acquired its majority stake in the Payzone Group in February 2010 for €45m, as part of a €104m deal that saw the company delist from the AIM. Payzone had been previously backed by Balderton Capital, which saw the value of its 54% stake wiped out in the deal, according to unquote" data.

Company
Cashzone, which trades under the Cardpoint brand in Germany, was founded in 1999. Its former parent company, Payzone, employs 600 staff and is based in Sandyford. The company operates 7,100 ATM machines in the UK, as well as a further 800 in Germany.

People
Charlie Troup is a partner at Duke Street. Mike Maloney is the CEO of Payzone Group, while Jonathan Simpson-Dent is the CEO of Cashzone and Cardpoint. Following the transaction, Simpson-Dent will become managing director of Cardtronic's newly created European branch, Cardtronics Europe. Andreas Raabe will continue his role as Cashzone and Cardpoint's managing director of German operations, and will be incorporated into Cardtronic Europe's management team.

Advisers
Acquirer - DC Advisory, Richard Pulford, Ben Thompson, Oliver Mauldridge (M&A).
Company - Canaccord Genuity (Corporate finance).