Unifiedpost Group Sells Wholesale Identity Access Business
Unifiedpost Group Announces Strategic Sale
Unifiedpost Group (Euronext Brussels: UPG), a prominent provider of integrated business communication solutions, has recently detailed the signing of a binding term sheet with Your.World B.V. for the divestment of its Wholesale Identity Access business in the Netherlands. This transaction is a significant step forward for Unifiedpost as it not only crystallizes value but also allows the company to sharpen its focus on core digital services.
Details of the Transaction
The transaction includes the sale of all shares in Unifiedpost B.V. following the separation of its non-Wholesale Identity Access business, with a base purchase price of approximately €133 million on a cash and debt-free basis. An additional earn-out payment of up to €7.7 million is contingent upon the achievement of specific financial benchmarks.
Strategic Partnership with Your.World
This move is part of a broader strategic partnership between Unifiedpost and Your.World. Unifiedpost's Banqup platform is to be distributed to over one million Your.World customers across Europe, significantly expanding the market reach for their services.
Market Opportunities
The Wholesale Identity Access business of Unifiedpost provides essential solutions, including identity access management tools and sector-specific single sign-on systems that enable businesses to securely engage in the digital realm. By partnering with Your.World, Unifiedpost positions itself to access a broader customer base, particularly within the SME sector, across various European markets.
Financial Strengthening
Utilizing the cash consideration from this transaction, Unifiedpost aims to substantially reduce risks on its balance sheet, fortifying its overall financial standing. This divestment is a proactive measure to align with the European Digital Identity Regulation (eIDAS 2.0), which demands significant investments and adaptations in the evolving digital landscape.
CEO Remarks
Hans Leybaert, CEO, emphasized the strategic importance of this transaction in a recent statement, highlighting that it presents a unique opportunity to crystallize the business's value while simultaneously mitigating financial risks. This partnership will enhance their ability to serve customers not only in the Netherlands but also in international markets.
Business Performance Metrics
In the fiscal year of 2023, the Wholesale Identity Access business reported an EBITDA of €8.3 million. The agreement stipulates that 46 employees will transition to Your.World, thereby preserving employment within this segment.
Transaction Conditions
The completion of the transaction is contingent upon various standard approvals and consultations, ensuring that no significant adverse conditions arise prior to closing. The target date for finalizing this sale is projected by the end of 2024.
About Unifiedpost Group
Unifiedpost is recognized as a leading cloud-based platform delivering SME business services centered around documents, identity, and payments. By providing an entirely cloud-oriented solution, Unifiedpost facilitates seamless interactions along the financial value chain for its users. The company operates with a mission to simplify and enhance administrative and financial processes for its clientele.
About Your.World
Your.World serves as a premier platform enabling businesses to expand their online presence. With a significant workforce supporting over a million customers, they focus on fostering local entrepreneurial growth through strategic partnerships, empowering businesses across Europe.
Frequently Asked Questions
What does the sale of Unifiedpost's Wholesale Identity Access business entail?
The sale involves transferring all shares of Unifiedpost B.V. after carving out its non-Wholesale Identity Access segment, with a focus on expanding market reach through Your.World.
How will this transaction benefit Unifiedpost Group?
This divestment will strengthen Unifiedpost's balance sheet and allow for a concentrated focus on core digital services like e-Invoicing and e-Payment.
Who will benefit from the strategic partnership with Your.World?
The partnership is expected to benefit both Unifiedpost and Your.World clients, expanding access to Unifiedpost's Banqup platform to a broader customer base.
What are the projected financial outcomes of the transaction?
The transaction aims to generate cash flow to enhance financial stability, with projected completion by the end of 2024.
What role does the eIDAS 2.0 regulation play in this sale?
The eIDAS 2.0 regulation necessitates enhanced capabilities for identity management, which the partnership is set to fulfill.
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