Global sport betting and online gambling provider, GVC Holdings, have confirmed yesterday that they would be selling their payment processing business Kalixa Group. The confirmation came after a previous announcement from the company who are expected to dispose of their payments arm by no later than Q1 of 2017. The reason, as they state it, is to gather additional funds to lower their net debt.
The Kalixa Group is to be sold to a Singapore-based payments provider Senjo Group Pte Ltd, who will spend a total of €29 million on the deal. The entire sum is to be paid in cash after the transaction is finalized, which will take a few months to complete due to foreign and domestic regulations. But once the deal is finalized, GVC Holdings are expected to get a total consideration of €35.5 million. The sale announcement came only a few days after GVC revealed a 49% special dividend increase to their share holders on the reports of a healthy Q4 profit.
The Kalixa Group has been providing a number of payment services to the sport betting company, as well as other corporate clients, including Senjo Group Ltd. Only in 2016, Kalixa achieved four quarter revenue of €22.7 million while also suffering a pre-tax and interest loss of €7 million. But despite being sold to a different owner, the payments group will still remain a service provider to its former parent company, according to Kenneth Alexander, GVC Holdings CEO.
Commenting on the upcoming deal, Alexander told the press that they are happy to be selling Kalixa Group to a new owner, one that has its focus on financial services and can provide the payment company room for further growth. With less net debt, GVC Holdings is expected to keep thriving, especially with the help of the Bwin.Party brand they’ve recently acquired.