Ann: ASSET: PAY: Pushpay sells Run The Red

• Release Date: 01/04/16 08:30
• Summary: ASSET: PAY: Pushpay sells Run The Red
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					PAY
01/04/2016 08:30
ASSET
PRICE SENSITIVE
REL: 0830 HRS Pushpay Holdings Limited

ASSET: PAY: Pushpay sells Run The Red

Pushpay sells Run The Red

Auckland, New Zealand | Redmond, Washington, USA - 1 April 2016

Pushpay Holdings Limited (NZSX:PAY) ('Pushpay' or 'the Company') announces
that it has sold its SMS gateway business Run The Red to Modica Group for an
aggregate value of $4,500,000.

Run The Red integrates text messaging with core business applications using
an SMS Gateway and facilitates personalised communication.

Under the agreement with Modica Group, which was entered into and completed
yesterday evening, Pushpay sold the intellectual property and other assets
associated with Run The Red, transferred working capital items and assigned
customer and supplier contracts to Modica Group (and where consents to
assignment are required, agreed to work with Modica Group to obtain those
consents). In addition, the staff working at Run The Red have accepted offers
of employment from Modica Group.  The purchase price will be paid in two
instalments, $4,000,000 which was paid yesterday evening on completion and
the balance of $500,000 to be paid in March 2017. The agreement includes
warranties and indemnities usually associated with such a transaction.

Pushpay's CEO, Chris Heaslip said, "Following a competitive process, which
attracted a number of interested parties, we are pleased to sell Run The Red
to Modica Group on favourable terms. Moving forward we will focus our
resources on our rapidly growing core business, which provides simple,
intuitive and secure payment solutions to our merchants.

"The sale of Run The Red will maximise value to Pushpay's shareholders by
freeing up capital for investment. In particular, the sale allows us to
redeploy capital received to support our growth strategy in the USA and our
target of reaching $100 million of Annualised Committed Monthly Revenue by
August 2018," he said.

Contact

Sarah Elder | Investor Relations | Pushpay Holdings Limited
P: +64 21 637 449 | E: [email protected]
www.pushpay.com

Stuart Wilson | Chief Executive Officer | Modica Group
P: +64 21 415 052 | E: [email protected]
www.modicagroup.com

About Pushpay

Pushpay provides mobile commerce tools that facilitate fast, secure and easy
non point of sale payments between consumers and merchants. Pushpay targets
merchants who are looking to offer convenient, personalised and intuitive
payment solutions to their consumers. Pushpay services three target markets:
the faith sector; non-profit organisations and enterprises (both small medium
enterprises and corporate organisations).

Pushpay was awarded four Stevie Awards in 2016 including Silver in the
Customer Service Department of the Year category. Pushpay is ranked 1st on
the TIN100 ASB Ten Hot Emerging Companies List and Pushpay's co-founders
Chris Heaslip and Eliot Crowther are the EY Entrepreneur Of The Year 2015 New
Zealand Young category winners.

To download the Pushpay App, visit the iTunes App Store or Google Play and
search for "Pushpay".

Visit www.pushpay.com to learn more and see an online demonstration of how
Pushpay enables merchants and consumers to "never miss the moment".

About Modica Group

Modica Group has grown from a New Zealand-based company to have offices in
New Zealand, Australia, United States and Central America and thousands of
customers worldwide. Modica Group provides mobile operators, government,
enterprise and mid-sized organisations with a suite of Mobile applications
via a cloud based enterprise platform that is connected to almost every
mobile operator globally. Via their enterprise Platform as a Service (PaaS)
they deliver solutions anywhere, quickly, and cost-effectively. Their
portfolio features work ranging from some of the world's biggest brands down
to some small but unique local solutions in countries as diverse as the
United States, Qatar, New Zealand, and the Dominican Republic. At the heart
of their business is a dedicated team of individuals with the technical
know-how and creative talent to enable clients to talk to their customers.

ENDS
End CA:00280134 For:PAY    Type:ASSET      Time:2016-04-01 08:30:18