AUCKLAND: Smartpay, the largest independently owned and operated EFTPOS provider in New Zealand, has reached a binding agreement to sell its New Zealand business and assets to Verifone Inc. for a cash purchase price of NZ$70 million.
The proceeds of the sale will be used to capitalise the Australian business for accelerated growth, settle all banking facilities and provide a cash distribution to shareholders.
The cash distribution to shareholders will be finalised closer to completion of the sale and will be a function of capital structure and funding requirements for the Australian business at that time.
The Board’s current expectation is that this distribution is likely to be around NZ$0.20 / share.
Bradley Gerdis, Managing Director of Smartpay, commented: “This transaction is a significant achievement for Smartpay as it recognises the substantial value we have created in our New Zealand business.”“The transaction provides a substantial value outcome for our shareholders in what is a mature part of our business and allows us to go forward applying all our resources and focus to our fast growing Australian terminal and acquiring business.”