SmartPay purchase delays Australian listing
Payments company SmartPay is buying Eftpos terminal provider Viaduct Limited in a $16.3 million deal which has delayed plans to list on the Australian Stock Exchange.
Viaduct is one of the largest eftpos providers in the country. It was founded eight years ago by directors and majority shareholders Mark Unwin and Marty Pomeroy who will join SmartPay in senior roles. The company is based in Wellington and employs 30 staff.
Managing director of SmartPay Bradley Gerdis said: “Just 12 months ago we set a strategic vision for our New Zealand business to become New Zealand’s leading eftpos and payments business... These developments combined with our growth potential into Australia mean we are very positive about SmartPay’s future.”
SmartPay said the deal pushed out the timing for a planned Australian Stock Exchange listing to the second quarter of next year due to regulatory requirements.
The purchase price of $16.3m will be settled in cash of $14m and $2.3m of SmartPay shares to be issued to the vendors at $0.15 each. The acquisition is expected to contribute around $6m of revenue and around $3m of EBITDA to SmartPay on an annualised basis.
Final completion and settlement of the transaction is expected around late January 2013.