Eagle Eye acquires Dublin-based Promotional Payments Solutions

(Sharecast News) - Eagle Eye announced on Monday that it has acquired Dublin-based software-as-a-service (SaaS) company Promotional Payments Solutions for a net consideration of €5.5m, expanding its presence in the digital promotions and loyalty solutions market. The AIM-traded firm said the deal, which includes €2m in cash held on Promotional Payments' balance sheet, was being funded from its existing cash reserves.

It said the acquisition was expected to be immediately earnings-per-share enhancing and brings with it a portfolio of enterprise customers, including Musgrave Group, Tesco UK and the Co-operative Group, as well as major global consumer packaged goods brands.

Promotional Payments generated unaudited SaaS revenue of €3.2m and adjusted EBITDA margins of around 30% in the year ended 31 December.

"We are excited to welcome Promotional Payments Solutions and its customers to the Eagle Eye family," said Tim Mason, chief executive of Eagle Eye.

"Promotional Payments Solutions' capabilities in real-time couponing are a strong addition to our AIR platform, in an area of growing interest to retailers and brands.

"Its track record and long-standing relationships speak to the quality of the team and offering and Rory, Les and Neil's successful stewardship of the business to date."

Eagle Eye said the deal would deepen its engagement with mutual clients and expand its offering into real-time CPG-funded couponing, a growing segment that offers further upsell opportunities within its existing UK customer base and the potential to expand internationally.

Eagle Eye said the acquisition included the integration of Promotional Payments' core team, including CTO Les Carter, while current executive chair Neil Cooke and CEO Rory Meehan would transition to consultancy roles.

"Over the past decade, we've built Promotional Payments Solutions into a trusted provider of digital promotions and real-time coupon redemption and reconciliation for some of the UK and Ireland's leading retailers and brands," added Rory Meehan, CEO of Promotional Payments Solutions.

"As the market continues to grow, we recognised that now was the right time for a new home for the business, providing the ability to accelerate growth.

"The alignment in values, ambition, and technology between Promotional Payments Solutions and Eagle Eye gives us great confidence that the team, customers, and platform will continue to thrive as part of the Group, a known global leader in digital marketing technology."

Eagle Eye also confirmed it would issue a full-year trading update on 15 July.

At 0900 BST, shares in Eagle Eye Solutions Group were down 1.46% at 202p.

Reporting by Josh White for Sharecast.com.