Awardit AB (publ) has negotiated down the purchase price in the business transfer agreement regarding Goyada AB's bankruptcy estate by 15 percent
Awardit has entered into a renegotiated business transfer agreement with Goyada AB's and Oper8 AB's bankruptcy estate and thereby acquired all technical platforms and other intellectual property rights such as domain names for a purchase price of SEK 5 million.
Awardit entered into a business transfer agreement with Goyada AB's and Oper8 AB's bankruptcy estate on March 4 and has since held discussions with critical suppliers and customers. Against the background of COVID-19 and the fact that collaborative discussions drag on over time, a new and more favorable business transfer agreement has been negotiated for Awardit. The purchase price has been reduced from SEK 5.9 million to SEK 5 million and a further four weeks deadline for securing contracts has been obtained. Work on getting the technical platform going starts as soon as possible. SEK 3 million is paid on March 20 and SEK 2 million on April 15. However, Awardit has the right to cancel the agreement and withhold the last payment if the necessary agreements have not been formalized. In the event of a termination, the bankruptcy estate retains the first payment. However, after the initial discussions with the critical suppliers, this is not considered to be relevant.
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 owners of shopping centers. Under the Anygift brand, a B2B e-commerce portal was run for a large amount of gift cards with their own product Guldpresentkortet [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 a turnover of approximately SEK 834 million with an EBIT of approximately SEK 14 million. The book value of the technology platform amounted to approximately SEK 21 million.
During two intensive work weeks with discussions with suppliers, customers and staff at Goyada, we have found that the business opportunities are greater than we first thought. This opportunistic deal can be really good for Awardit's shareholders. In addition, we have succeeded in reducing the purchase price by SEK 0.9 million as a result of market turmoil around COVID-19
says Henrik Olander, VD Awardit.