WorldPay’s 2013 annual report reveals a hefty £23.2m price tag for its acquisition of YESpay – a UK based payment service provider specialising in providing managed services for retailers.
WorldPay bought YESpay primarily as a core technology platform to power WorldPay Total – a payment service that integrates card machines into its customers EPOS software and WorldPay Zinc, its m-POS product. YESpay was acquired in March 2013 but would have contributed £4.9m revenue and £0.1m PBT if it had been part of the group for the full 12 months.
WorldPay paid £17.6m cash and estimates a further £5.6m in deferred payments to YESpay’s founders– Chandra and Rohit Patni. This puts a value of 4.7x sales and 232x PBT on YESpay although the earnings multiple falls to “just” 46 if you calculate it on EBITDA. That’s because within that £23.2 purchase price there is a chunky figure of £22m for goodwill.
This hefty valuation is good news for owners of the few remaining independent payment service providers left in the UK. The Logic Group (£18m revenue), to name but one.