Optimal Payments issues new trading statement

Revenue and EBITDA in USD (the Groups reporting currency) for the year to date for Optimal Payments existing operations are in line with expectations notwithstanding the recent weakness of the EUR. The consolidation of Meritus and GMA in the US, acquired in July 2014, has progressed well and these businesses are being managed as one integrated business unit together with the NETBANX Straight Through Processing business.

The principal focus of corporate activity in this financial year has been on the acquisition of Skrill for a total consideration of EUR 1.1 billion and its associated funding. In the period since the announcement of the transaction, the equity element of this funding has been accomplished through a underwritten rights issue of five new ordinary shares at 166p for every three shares held to raise a total of GBP 451 million. Acceptances were received from qualifying shareholders for almost 97% of the total new ordinary shares being offered with the balance being placed with institutional investors at 290p. In addition, a funding term loan of EUR 500 million, also underwritten by BMO, Barclays and Deutsche Bank, has been raised together with the arrangement of a EUE 78 million revolving credit facility.

Completion of the acquisition is now subject to the satisfaction of certain conditions, which primarily comprises regulatory approval by the UKs FCA, which is expected to be received in Q3, 2015. On completion, the vendors of Skrill will receive the agreed cash consideration of EUR 720 million and approximately 37.5 million new ordinary shares in Optimal Payments, representing 7.9% of the enlarged issued share capital of the Group. These shares are subject to lock-in arrangements for a period of 180 days from the date of issue.

Management has continued to plan the integration of Skrill into the Group with a dedicated internal team addressing all aspects of combining the two groups and focusing in particular on the combination of Skrills Stored Value businesses with NETELLER. As originally announced, the Group expects to generate some USD 40 million of synergy benefits by the end of the first full year of ownership to 31 December 2016. These benefits are in addition to the customer and geographic diversification and the increased scale and market presence of the enlarged Group.

At the time of the announcement of the transaction, it was stated that Skrill was due to complete a small acquisition of its own - Ukash, a pre-paid e-money payment provider. This acquisition completed on 31 March, 2015 and will be merged into Skrills paysafecard business.