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Pushpay sells Run The Red unit

NZN 31/03/2016 Tina Morrison

Mobile payments app developer Pushpay Holdings has sold its Run The Red business for $4.5 million.

The proceed of the sale of the personalised text messaging service for businesses will be used to expand its core business.

The sale of the unit to Modica Group was completed on Thursday with an immediate payment of $4m and the balance to be paid in March 2017 with Run The Red staff moving to Modica, it said.

Pushpay bought Run The Red in June 2014, enabling it to offer targeted text messages for clients including Westpac Banking Corp, Vodafone, Sky Network Television, Z Energy, Facebook and the Department of Internal Affairs. It says the sale of the business will allow it to focus resources on its rapidly growing core business providing payment solutions to merchants.

"The sale of Run The Red will maximise value to Pushpay's shareholders by freeing up capital for investment," said chief executive Chris Heaslip.

"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."

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