Trigon advises Eurocash Group on its sale of PayUp to Innova Capital’s Polskie ePłatności

Eurocash Group, the largest Polish company operating in wholesale distribution of food products and providing marketing support for independent Polish entrepreneurs in retail, has signed a preliminary agreement to sell a 100% stake in PayUp Polska S.A. (“PayUp”)

PayUp currently operates more than 15,500 POS terminals installed at stores in partner and franchise networks organised by Eurocash Group and at other retail stores. The terminals are used for financial services such as acceptance of payment cards, mobile phone top-ups, cash back, bill payment and secure online payments.

Polskie ePłatności (“PeP”) specialises in the processing of cashless payments, including payment transactions using payment cards as well as other services provided through POS terminals. PeP was founded in 2010 by the management team of OPTeam. Innova Capital, a private equity firm operating in Central Europe, has been the majority owner of PeP since 2016, with OPTeam retaining a minority stake.

The transaction is in-line with Eurocash Group’s strategy to focus on its core business, whereas PayUp will gain a strong strategic partner with the know-how and resources necessary for further development. The merger with PayUp is in-line with PeP’s long-term development strategy to build scale and secure a leading position on the electronic payments market. Last year PeP acquired the NeoTu terminal network from Kolporter.

The price for the 100% stake in PayUp was set at PLN 110 million (~EUR 26m), although the final sale price might change depending on the achievement of certain agreed financial parameters. The agreement is subject to approval from the President of the Office of Competition and Consumer Protection, among other things.

The parties to the transaction have also executed an agreement on cooperation and exclusivity for a five-year period. This ensures the continuity of financial services provided through POS terminals for Eurocash Group’s customers.

Eurocash Group was advised by Trigon (transaction advisor) and SK&S Legal (legal advisor). PeP was advised by WKB Wierciński Kwieciński Baehr (legal advisor) and TS Partners (due diligence).

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