Shares of UK-based payments firm PayPoint (LSE:PAY) climbed roughly 8% on Tuesday, leading gains on London’s mid-cap index.
The rally followed the announcement that International Distribution Services (IDS), the parent company of Royal Mail, is investing £43.9 million in PayPoint’s Collect+ business.
Under the deal, IDS acquires a 49% stake in Collect+, valuing the unit at £90 million.
In connection with the transaction, PayPoint declared a special dividend of 50 pence per share for its shareholders.
The company also anticipates that the investment will bolster earnings per share in the first full fiscal year ending March 2027.
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