Following a prior announcement, B2B and B2C provider of products and services for the iGaming industry GVC Holdings today confirmed the sale of its payments processing arm Kalixa Group.
Singapore-headquartered investor and payment services provider Senjō Group Pte. Ltd. is set to buy the business for €29.0 million. The total consideration will be paid in cash upon the transaction’s completion. The deal is expected to be closed in the first quarter of 2017, once it is made sure that all the necessary domestic and international regulatory requirements are fulfilled.
GVC Holdings said in today’s statement that it would receive a total consideration of €35.5 million from the deal. The gambling operator and service provider noted that it would not dispose of the Kalixa Pay Ltd. business, which is currently part of the Kalixa Group. Excluding expenses, GVC Holdings will use the amount payable to reduce its net debt.
Owned by the Isle of Man-based gambling company, Kalixa Group provides a range of payment services, including payment processing, to both its current owner and other corporate clients. It has been understood that Kalixa will remain a payment services provider to GVC Holdings after the sale is completed.
Kalixa reported full-year revenue of €22.7 million and loss before interest and tax of €7 million for the twelve months ended December 31, 2015.
Commenting on the announcement, GVC Holdings CEO Kenneth Alexander confirmed that they will remain Kalixa clients post-sale. The executive also pointed out that they are pleased to be selling the business to a new owner that is primarily focused on payments processing as this would give Kalixa the opportunity to further develop its activity.
A recent trading update provided by GVC Holdings shows that the company expects an increase in daily net gaming revenue of 12% as compared to the previous year. The anticipated rise could, among other factors, be attributed to the completed acquisition of online gaming operator bwin.party and its brands.
Daily sports betting revenue is expected to grow 19% for the full year. Daily revenue from gaming products and other services is to increase around 8% year-on-year, according to the gambling company. GVC Holdings revealed that it has been trading well during this year’s fourth quarter, particularly in December, which had formerly been its strongest month.
