PayPoint and Appreciate Group agree terms for acquisition

PayPoint has agreed terms to acquire the Appreciate Group, potentially opening up its gift voucher range to independent retailers.

The boards of directors of both companies have reached an agreement on the terms of a recommended offer which is expected to be completed in the first half of 2023. The terms will be put to Appreciate shareholders although the group directors intend to recommend unanimously that Appreciate Group shareholders vote in favour of the deal.

Appreciate Group brands include Love2shop, highstreetvouchers.com, Park Christmas Savings and Appreciate Business Savings.

Commenting on the deal, chief executive of PayPoint Nick Wiles, said: “The acquisition will strengthen our digital payments offering and create an enhanced retail proposition across our partner network, including more than 28,000 convenience stores, delivering additional growth opportunities for the Enlarged Group.

“More specifically, the proposed acquisition would jointly target growth in three broad areas: prepayment saving through Park Christmas Savings to support customers with budgeting tools for Christmas and other events; an enlarged full-service offering for gifting, employee rewards and benefits to Appreciate Group’s corporate clients; and an extended consumer gifting network for the Love2shop brand.”

Guy Parsons, executive chairman of Appreciate Group, added: “PayPoint’s offer represents an attractive premium for Appreciate Group Shareholders providing an opportunity to exit the majority of their shareholdings for cash, whilst participating in the potential upside of the combined Appreciate Group and PayPoint businesses over the long-term. We believe that all three segments of the Wider Appreciate Group’s business can prosper under PayPoint’s ownership given PayPoint’s capabilities, and that the Acquisition represents a good opportunity for all our stakeholders to benefit from both the immediate cash consideration and the potential future value creation and enhanced capabilities to Appreciate Group’s consumer and corporate clients arising as a result of the combination of the businesses.”