Smartpay Snaps Up New Zealand Eftpos Market

b>Smartpay Snaps Up New Zealand Eftpos Market
SmartPay Buys ProvencoCadmus For $6M

Auckland, 20 August 2009 – Leading Merchant Services provider SmartPay Ltd (NZX: SPY) advised today that it bought the Payments Division of ProvencoCadmus for $6M to become New Zealand’s largest EFTPOS company.

Yesterday SmartPay said it had acquired the Payments Division of ProvencoCadmus including the New Zealand and Australian operations, transactional business and all intellectual property relating to payments.

Ian Bailey, Managing Director of SmartPay says the purchase was a very good deal and provides SmartPay with the scale to grow both the New Zealand market as well as key markets like Australia.

“We were very happy with the purchase of the ProvencoCadmus’ Payments Division for $6M which will deliver significant value to the SmartPay business. The deal was completed by an initial payment of $3M in cash with the balance of the purchase price to be paid in cash in 90 days,” says Bailey.

Bailey adds that SmartPay’s business has more than quadrupled as a result of the purchase which will boost profits going forward.

“The SmartPay customer base will now be around 30,000 terminals which will yield a positive and sustainable revenue stream and provide the base for rapid growth,” says Bailey.
SmartPay’s growth strategy is not over says Bailey.

“We are always looking for exciting opportunities and we have our sights on several other businesses that will provide further synergies and complement our existing business model,” says Bailey.
SmartPay will retain up to 50 ProvencoCadmus employees and will move into the existing business offices of ProvencoCadmus.

ENDS

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