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Alphyra Group is to pay STG3 million in cash and STG3 million in stock for the British business, which facilitates pre-payments for goods and services including utility bills and the top-up of mobile phone credits. Alphyra said the acquisition was in line with its strategy to consolidate its position in the UK market.
Under the deal, Alphyra will acquire the rights to a pre-paid cellular network platform, accredited to all of the network operators in the UK that are currently live with electronic top-up facilities. These are Vodafone, Orange and BT Cellnet. Alphyra said that it would now look to employ this platform for its own transaction requirements in the UK and across other European markets.
In addition, the deal has given Alphyra the rights to De La Rue's Payzone brand, which it said is one of the UK's leading national utility payment brands.
As of March 2001, the net assets of the business being acquired were STG2.5 million with losses attributable to such assets at STG1.5 million. The companies involved said that these losses were mainly due to an extensive investment programme by the transaction services division.
"De La Rue Transaction Services has significant experience in the servicing of prepaid cellular and utility payments, and we believe this offers a tremendous fit with our strategy," said Alphyra's chief executive officer, John Nagle. He said that the company would "immediately" embark on an integration process for its UK business that will deliver "significant synergies" for the group. It is not known whether this will involve job losses. Based in Dunfermline, Scotland and Northwich, England, De La Rue Transaction Services currently employs 63 people.
This deal is the latest in a series of acquisitions by Alphyra. In July, it purchased the British billing service for pre-paid mobiles and utilities, Targeted Transaction Management Services, for up to STG12.5 million, and in September it paid IEP3.45 million for Getronics Transaction and Card Systems, which provides electronic payment infrastructure to retailers in the Netherlands.
Alphyra also announced on Friday that it has signed an agreement with the French telecoms group Societe Francaise de Radiotelephone (SFR), for the distribution of pre-paid cellular codes in France. Under the agreement, Alphyra will establish an electronic PIN delivery infrastructure in SFR owned retail outlets and certain independent retailers throughout France. It is the company's first contract in the French market.
Alphyra currently owns over 6,000 terminals in Ireland, which enable Digifone customers to top up their pre-paid mobile phones. Other customers include Tesco and NatWest. The company recently reported a 46 percent increase in earnings for the year to 30 April 2001. Alphyra said earnings before interest, taxes, depreciation and amortisation rose to EUR8 million, up from EUR5.5 million the previous year.
Headquartered in Dublin, the company employs over 600 people in offices in Cork, London, Amsterdam, Stockholm, Paris and Frankfurt.
Alphyra can be found at http://www.alphyra.ie.
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