GVC offloads Kalixa to FinTech investment firm for €29m
Operator sells payments processing business to Senjō Group and will use the proceeds to pay down its net debt
GVC Holdings has announced the sale of its payments processing arm Kalixa Group to a Singapore-based FinTech investment fund, in a deal worth €29m.
The sale to Senjō Group is expected to complete during Q1 2017, subject to regulatory approval, while Kalixa will continue to provide payment processing for the operator post-acquisition.
GVC confirmed the total consideration receivable is capped at €35.5m and the proceeds from the sale will be used to pay down its net debt of €154.3m as of 24 July 2016.
However the deal does not include the wallet business currently operated by the payments group’s Kalixa Pay subsidiary which will be closed by the London-listed operator post-completion.
“We are pleased to announce the sale of Kalixa in line with our plans announced earlier in the year,” Kenny Alexander, CEO of GVC Holdings, said.
“Post-sale Kalixa will continue to process payments for GVC and our customers, but now with the opportunity to build a larger payment services business under new ownership which has payments as a core activity.”
According to a statement this morning, for the 12 months ended 31 December 2015, Kalixa generated revenue of €22.7m and a loss of €7m before interest and tax.
Gavin Lock, COO of Senjō, said the global payments investment company would help Kalixa expand its reach into new markets following the acquisition.
“This transaction will provide Senjō with a significant bridgehead in Europe supported by a strong Kalixa management team,” Lock said.
“In return Senjō Group will provide Kalixa with access to a network in Asia and the benefits of being part of a global specialist payments operator.”
Earlier this year chief exec Kenny Alexander said he would consider disposing of parts of Kalixa once the operator’s takeover of bwin.party was complete.