Pushpay sells Run The Red

Pushpay sells Run The Red

Auckland, New Zealand | Redmond, Washington, USA – 1 April 2016

Pushpay Holdings Limited (NZSX:PAY) (‘Pushpay’ or ‘the Company’) announces that it has sold its SMS gateway business Run The Red to Modica Group for an aggregate value of $4,500,000.

Run The Red integrates text messaging with core business applications using an SMS Gateway and facilitates personalised communication.

Under the agreement with Modica Group, which was entered into and completed yesterday evening, Pushpay sold the intellectual property and other assets associated with Run The Red, transferred working capital items and assigned customer and supplier contracts to Modica Group (and where consents to assignment are required, agreed to work with Modica Group to obtain those consents). In addition, the staff working at Run The Red have accepted offers of employment from Modica Group. The purchase price will be paid in two instalments, $4,000,000 which was paid yesterday evening on completion and the balance of $500,000 to be paid in March 2017. The agreement includes warranties and indemnities usually associated with such a transaction.

Pushpay’s CEO, Chris Heaslip said, “Following a competitive process, which attracted a number of interested parties, we are pleased to sell Run The Red to Modica Group on favourable terms. Moving forward we will focus our resources on our rapidly growing core business, which provides simple, intuitive and secure payment solutions to our merchants.

“The sale of Run The Red will maximise value to Pushpay’s shareholders by freeing up capital for investment. In particular, the sale allows us to redeploy capital received to support our growth strategy in the USA and our target of reaching $100 million of Annualised Committed Monthly Revenue by August 2018,” he said.

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