EML Payments has completed the sale of its Sentenial business, including Nuapay services, to GoCardless.
The transaction was valued at €32.8 million ($53.4 million).
Proceeds from the sale will be deployed to retire debt, substantially strengthening EML's balance sheet.
The sale concludes without any downward adjustments for key contract performance, marking a substantial milestone in EML’s ongoing strategic review.
Initially announced on March 15, the sale signifies a notable divestiture of a non-core, unprofitable business that lacked material synergies with other EML customers and operations.
Peter Lang, Executive Director and Chief Corporate Development Officer of EML Payments, commented on the sale, "We are pleased to have completed the Sentenial sale to GoCardless."
"The sale proceeds significantly strengthen EML's balance sheet and completes another strategic objective of the board's FY24 plan to simplify our operating structure and solve for loss-making businesses within the EML Group," Lang noted.
EML's pro-forma balance sheet as of June 30 indicates a transformation from a net debt position of approximately $48 million to a net cash position of approximately $5 million.
The improved liquidity is expected to support EML's future growth aspirations.
Additionally, EML is set to benefit from an earnout payment from GoCardless based on contracts signed by Sentenial between Feb. 1 and Oct. 2.
This payment will be calculated based on the first year’s revenue from the new contracts, multiplied by 4.1.
EML Payments provides a payment solutions platform. The company offers program management and payments to create customisable solutions for businesses, brands and their customers.