Digital Payments PLC
Summary: Digital Payments PLC is extending its global processing footprint by joining forces with the
Muscato Group Inc. to build the entire vertical chain of services ranging from provision of free
middleware to its clients, to issuing, processing and acquiring for on-line and real time card
businesses and transactions.
Acquisition of Muscato Group Inc
The Board of Digital Payments Plc ("Digital Payments" or the "Company"), the GXG Main Quote investing
company focusing on investment and acquisition opportunities in payment transaction and message
processing services is pleased to announce that it has acquired 100% of the issued share capital of
Muscato Group Inc. ("MGI") a USA, Florida based company (the "Acquisition"), which includes M2 Payment
Solutions Inc. ("M2") and all of its affiliates.
MGI and M2 provide financial institutions, companies, and government agencies in the United States,
Latin America and Europe with the technology, transaction processing and infrastructure needed to
launch innovative payment products and services.
Indicative figures arising from due diligence indicate that in the year ended December 2013 the
companies subject to the Acquisition recorded revenues of approximately USD 2m.
The Acquisition enables Digital Payments PLC to complete another step in their stated ambition of
being a global vertically-integrated payment company with worldwide processing capability.
M2 Payment Solutions will continue to operate under its current brand and business structure; adding
more functionality and resources to build on its global market presence. Digital Payments PLC will
enable M2 to increase its investment in technology, infrastructure, payment and global expansion. Over
the past 12 months M2 has released new products in both multi-currency and loyalty management and
expects to continue the path of new market products and services to deliver to its customer base.
The consideration for the Acquisition is USD 14.6 million, which is to be satisfied by the payment of
USD 4,600,000 in cash to the two shareholders in MGI and the allotment and issue, credited as fully
paid, of 118,694,362 new ordinary shares of 1p each in the Company at an effective price per share of
5 pence (together the "Consideration Shares"). The Consideration Shares will rank pari passu in all
respects with the existing ordinary shares of the Company.
Following the Acquisition and the issue of the Consideration Shares, the vendors of MGI have the
following interest in the Company's issued ordinary share capital:
Name Number of shares Percentage
Mr. Michael Muscato 79,169,139 14.15%
Mr. Joseph Adams 39,525,223 7.06%
The enlarged issued share capital of Digital Payments with voting rights attached consists of
559,619,362 ordinary shares of 1p each with one vote per ordinary share. The total number of voting
rights in Digital Payments is therefore 559,619,361 which figure may be used by shareholders (and
others with notification obligations) as the denominator for the calculations by which they will
determine whether they are required to notify their interest, or a change to their interest, in
Digital Payments under the UK Financial Conduct Authority's Disclosure and Transparency Rules.
The Directors of the Issuer accept responsibility for the contents of this announcement.
For further information please contact:
David Carr - CEO
Digital Payments Plc
Telephone: +44 207493 0387
Email: press@digitalpaymentsplc.com
GXG Corporate Advisor
Nick Michaels and Jon Isaacs
Alfred Henry Corporate Finance Limited
www.alfredhenry.com
Tel: +44 207251 3762
Digital Payments plc
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