EML Payments completes sale of Sentenial business

EML Payments Limited (ASX:EML) has successfully completed the sale of Sentenial Limited, including its Nuapay services business, to GoCardless Ltd for an enterprise value of €32.75m (A$53.4m). The proceeds from the sale will be utilized to retire debt, leading to a transition in EML's balance sheet from net debt to net cash. This sale significantly improves EML's liquidity to support future growth, following the establishment of new debt facilities.

Executive Commentary on Sentenial Sale Completion

Peter Lang, Executive Director and Chief Corporate Development Officer, expressed, 'We are pleased to have completed the Sentenial sale to GoCardless. The sale proceeds significantly strengthen EML's balance sheet and completes another strategic objective of the Board's FY24 plan to simplify our operating structure and solve for loss-making businesses within the EML Group. We thank Barrenjoey and Barclays for their advisory support and wish the Sentenial and GoCardless teams every success over the coming years.'

Summary of Sentenial Sale Completion and Outlook

EML Payments Limited (ASX:EML) has successfully completed the sale of Sentenial Limited, marking a significant milestone in the delivery of the company's strategic review. The sale proceeds will be used to retire debt, leading to a transition in EML's balance sheet from net debt to net cash. This improved liquidity, along with the establishment of new debt facilities, positions EML for future growth. Additionally, EML will benefit from an earnout payment from GoCardless, further enhancing its financial position. The completion of the Sentenial sale aligns with EML's strategic objective to simplify its operating structure and address loss-making businesses within the group. The company expresses gratitude to Barrenjoey and Barclays for their advisory support and extends best wishes to the Sentenial and GoCardless teams for the future. EML Payments remains focused on its global payments operations, serving diverse customers across various sectors, and is committed to delivering value to its stakeholders.