Paypoint acquires Handepay and Merchant Rentals

Payment solutions firm Paypoint has acquired card payments and terminal leasing businesses Handepay and Merchant Rentals.

Paypoint said the acquisitions were an "important step forward" in delivering enhanced growth and value in its core UK markets, enabling reach into new SME sectors - including groceries, hospitality, food services and auto trade.

The cash consideration for the acquisitions was expected to be roughly £70.0m on a cash and debt-free basis, after closing balance sheet adjustments.

Chief executive Nick Wiles said: "Our acquisition of Handepay and Merchant Rentals will significantly increase our card payments capability and broaden our SME customer base.

"This important step refocuses PayPoint towards a core growth area and creates synergies through cross-selling of other PayPoint services and leveraging the scale of the combined business."

As of 1035 GMT, Paypoint shares were down 6.93% at 540.0p.