Awardit AB (publ) has entered into a businesstransfer agreement regarding Goyada AB's bankruptcy estate
Awardit has entered into a business transfer agreement with Goyada AB's and Oper8 AB's bankruptcy estate, thereby acquiring all technical platforms and other intellectual property rights such as domain names for a purchase price of SEK 5.9 million.
Following a bidding process, Awardit has entered into a business transfer agreement with Goyada AB's and Oper8 AB's bankruptcy estate, thereby acquiring all technical platforms and other intellectual property rights such as domain names. The purchase price has been agreed at SEK 5.9 million and will be paid in cash on March 11, provided that it is established that certain critical supplier agreements can be concluded by Awardit. In the event that these agreements cannot be concluded by Awardit, the business transfer agreement is invalid.
Goyada's business has mainly consisted of providing digital solutions for the issuance, redemption and sale of gift cards and mobile phone cards through the proprietary technology platform Yadabank. Through Oper8's subsidiary Cashcom i Sverige AB, gift card solutions have been provided to shopping center owners. Under the Anygift brand, a B2B e-commerce portal was run for a large amount of gift cards with their own product Gold Gift Card as the main product. The business has partly competed with Awardit's subsidiary Retain24. The operations and the technical platform are judged to complement Awardits and Retain24's operations in a positive way. The platform is particularly interesting as it enables charging and redemption of plastic card-borne and digital gift cards / vouchers in existing card terminal networks, which means that integrations in cash and business systems can be avoided. In 2018, Goyada had sales of approximately SEK 834 million with an operating profit of approximately SEK 14 million. The book value of the technology platform amounted to approximately SEK 21 million. The bankruptcy was caused by very large accounts payable over a long period of time.
Awardit finances the acquisition from its own cash, which causes the Board of Directors to consider adjusting the dividend proposal for the year accordingly.
We have followed for a long time and also collaborated with Goyada. When the bankruptcy became a fact, we saw a very interesting opportunity to supplement our own operations and consolidate our position in the market for digital gift card solutions
Our assessment is that Goyada's core business has been sound and that the technical platform is well functioning. We will work to restore the part of the business that involved digital distribution of gift cards and mobile cards and the operation of gift card systems. On the other hand, we consider the turnover most of the mobile card business, resale in physical stores, as less interesting due to low margins.
This is an opportunistic business that we see complements our existing business and which we believe can generate great value in the future for our shareholders.
says Henrik Olander, VD Awardit.