Business
River Tech - Acquisition and Restructuring Plan
River Tech - Acquisition and Restructuring Plan
About this update from River Tech P.l.c.
Malta, 02 October 2025:Reference is made to market announcement published 17 September 2025 andmarketupdate published 19 September 2025 by River Tech p.l.c. (the "Company",togetherwith its subsidiaries, the "Group").Following the formal notices of termination from the Group's key client,Tech4SLimited, the Board of Directors and Management have initiated a plan tosafeguard shareholder value and secure future revenue growth.The plan includes the following actions:1. Acquisition of the assets, business, and employees of MSIPAY LimitedAn agreement for the Group to acquire the assets, business, and employees ofMSIPAY Limited ("MSIPAY"), a company registered in Malta, was signed by theparties involved on 29 September 2025. Delay of disclosure was decided inaccordance with the EU Market Abuse Regulation (MAR), article 17(4).The transaction presents a significant strategic opportunity that aligns withthe Group's growth objectives in the technology industry and broader paymentsand KYC technology markets. The product of MSIPAY is a scalable payment andKYCtechnology platform with strong foundations in digital transactions. The Grouphas been previously engaged for the technical development of the technologicalplatform for MSIPAY.The transaction offers both standalone growth potential and significantsynergies with the Group's existing platform, making it a strong deal for theGroup and its shareholders.The net value of the acquisition is estimated to be EUR 359,000. Payment willconsist of the Group issuing a waiver of existing debt of EUR 537,916 owed byMSIPAY to the Company's subsidiary, River Technologies Limited. In addition tothe value of the assets acquired, Kahl Holdings Limited, the sole shareholderofMSIPAY, will transfer its complete holding of shares in the Company of 435,540shares to the Company.The acquisition is expected to be completed by 31 December 2025, whileintegration of assets, business, and employees of MSIPAY already has startedandwill be completed by 31 October 2025.2. Leveraging three product linesFollowing the acquisition of the operations of MSIPAY, the Group can now offeraPayments Aggregator and Orchestrator Platform in addition to the existingtechnology platform. A third product line, Content Management, is underdevelopment and close to completion. The three product lines will improvecompetitiveness and reduce risk.3. Secure cashflow and redu...