10th Feb 2017 08:41
LONDON (Alliance News) - Boxhill Technologies PLC said Friday it has seen a second-half slowdown in its payments business, as it proposes to acquire a payments software firm.
Boxhill said its EmexPay business "slowed" in the second-half due to new regulations from card scheme operators and acquiring banks, restricting certain suppliers from providing the "full range" of credit card transactions.
Shares in Boxhill were down 24% at 0.14 pence Friday morning.
Boxhill also noted it has agreed heads of terms to acquire Timegrand Ltd, a special purpose vehicle which holds payments intellectual property and software. Boxhill said the acquisition will improve turnaround times for administration and reconciliation activities, as well as internal reporting capabilities.
Boxhill said the acquisition will be paid for by issue of 500.0 million new shares, and is expected to complete in the first quarter of 2017.
The company said its lottery operating arm and Soccerdome joint venture in Nottingham continue to operate in line with expectations.
"The changes to regulations for credit card processing introduced particularly by Visa have resulted in a temporary slowdown in the operation of the Payments Division. We have taken this opportunity to develop and enhance the business in ways which will produce positive results in the coming months," said Edward Razzall, chairman of Boxhill.
"In addition, the acquisition of Timegrand saves both time and money by delivering increased efficiencies and resource-saving functionality which, with one eye on the future, will assist as we continue to make planned progress within our payments division. Additionally we are continuing to look for a new CEO and will update as and when appropriate," added Razzall.
By Adam Clark; [email protected]
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