IPPLUS, the customer engagement specialist focussed on telephony and secure payment solutions, is to seek shareholder approval for the sale of IPPlus (UK) and CallScripter for £6.7 million to focus fully on PCI-PAL.
- Conditional agreement to sell the Ansaback call centre and CallScripter businesses to Direct Response Contact Centres Group Limited
- £3.75 million of the consideration will be paid on completion and the balance received in the form of Loan Notes, to be repaid over 42 months post completion
- Sale and leaseback of the Group's property generating further net cash to the Group of c. £0.8 million
- Expected £4.8 million net cash position (including existing Group resources) at completion
- Proposed special dividend of £1 million to shareholders on completion of the Disposal; further announcements will be made following completion
- Proposed change of Group name to PCI-PAL Plc on completion of the disposal, to reflect the renewed focus of the Group focussing on its secure payments solutions business, PCI PAL
- Focus on pursuing the significant potential in secure payment solutions and the data security market, as evidenced by recent contract wins and growing transaction volumes
Chief executive William Catchpole said: "The opportunity to focus fully on PCI-PAL and the high growth market for secure payment solutions is a natural step for the business given the appetite that we are seeing in the market. Existing clients include major global brands spanning the retail, service, and financial services sectors and the business is enjoying a strong rise in transaction volumes.
"The FinTech sector is being shaped by those with first mover advantage. As a result of this sale, the Group will soon be renamed PCI-PAL to reflect the renewed focus and will be well funded to pursue the growth opportunity."