The Irish group Paragon has finally announced the purchase of the Catalan electronic voting company Scytl. He did so on Thursday through a relevant fact to the National Securities Market Commission (CNMV) of its other investee in the state, the reprographic company Service Point. With this operation, Paragon guarantees the immediate future of Scytl and saves the nearly 140 workers from the creditors’ bankruptcy that was launched in December last year.
As reported by ARA, in late September the main creditors of the technology gave the green light to the multinational’s offer to acquire Scytl, and after closing the fringes with some of the banks the operation has gone ahead. The purchase also includes the Civiti citizen consultation platform (initially a joint project with Telefónica) and the Barcelona company’s subsidiaries in the United States, Canada, Australia, Switzerland, France and the Netherlands.
In addition, with the integration Scytl will change its name to Scytl Election Technologies. The company was dragging a debt of about 75 million with the banks, which have finally accepted Paragon’s € 3 million offer in exchange for the production unit and software licenses. “The acquisition of Scytl is the first step in our strategy to develop Service Point Solutions as a European leader in the business of digital transformation and technology,” said Service Point President and Chief Financial Officer Paragon Laurent Salmon .
New stage without debt
When it went into pre-bankruptcy, Scytl was in a very complicated financial situation after dragging losses and stagnating in revenue growth due to bad experiences in developing countries.
Thus, with the purchase by Paragon, the electronic voting platform will be able to exploit the rise of this electoral system at a time when the pandemic will also force a rethink of the elections. In addition, in recent years Scytl had pushed for a business division aimed at elections for private clients beyond governments, such as unions, universities or professional colleges, which Service Point could relaunch.