Paypoint (LSE:PAY) shares jumped 9% after the company announced a £43.9 million deal with Royal Mail’s owner, International Distribution Services, to take a 49% stake in its Collect+ parcel network.
The move values Collect+ at £90 million and cements the partnership by expanding services at nearly 8,000 UK outlets. From October, Royal Mail-branded counters will appear in stores, with self-service kiosks due to follow in early 2026.
To sweeten the deal for investors, PayPoint unveiled a special dividend of 50p per share alongside a 12-for-13 share consolidation, returning £34.5 million to shareholders if approved at an October meeting.
Management expects the transaction to boost earnings per share by March 2027.
Chief executive Nick Wiles said the partnership would broaden Collect+ into the “leading open out-of-home store network in the UK”. Royal Mail’s Alistair Cochrane added that the initiative would make parcel services more convenient for customers.
The shares rose 51p to 725p.