GVC Sells Off Kalixa

Sold to Singapore-based Senjō Group Pte. Ltd for Euro 29 million.
GVC Holdings announced Monday that it has sold off its online payments processor Kalixa to Singapore-based Senjō Group Pte. Ltd for Euro 29 million. GVC announced its intention to dispose of the subsidiary back in September this year.
The consideration will be paid on completion of the deal, probably during the first quarter of 2017, and subject to a completion accounts adjustment. The total consideration receivable by GVC is capped at Euro 35.5 million.
The GVC announcement clarifies that the sale does not include the wallet business currently operated by Kalixa Pay Limited, a subsidiary within the Kalixa Group, which will be closed by GVC post-completion.
In addition, prior to completion, an amount equal to the free cash (over and above Euro 2.1 million) in the Kalixa Group will be retained by GVC by way of dividend.
The sale proceeds (net of expenses) in the Senjō deal will be applied towards reducing GVC's net debt, the company says, observing that the sale of assets to Senjō and the run-down of Kalixa Pay will have a neutral effect on the GVC Group's EBITDA.
Kalixa Group will continue to provide payment processing services to GVC post-completion under an existing contract.
For the financial year ended 31 December 2015, the Kalixa Group generated revenue of Euro 22.7 million and a loss before interest and tax of Euro 7 million. As at 30 September 2016, the Kalixa Group had gross assets of Euro 80.7 million, and a net book value of Euro 41.9 million which includes Euro 19.2 million of intangible assets.
GVC says the sale in likely to result in a modest book loss on around Euro 4 million in 2017 which it is anticipated will be treated as an exceptional item.
GVC chief executive Kenny Alexander said:
"We are pleased to announce the sale of Kalixa in line with our plans announced earlier in the year. 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."