One of New Zealand's leading merchant services providers, SmartPay has finally purchased Provenco Cadmus payments division at $3 million, using the proceeds of IPO and debts.
Provenco is one of the New Zealand's largest providers of Eftpos-related products and software and it had merged with Cadmus in 2007.
The firm had sold 43,683,472 shares through a private placement and arranged cash from some groups and individuals for funding the transaction. SmartPay Managing Director Ian Bailey said that arranging funds at this time of volatile economic environment indicate revival of investors’ confidence.
The firm is expected to get additional equity of $1.711 million, according to Mr. Bailey, on accounts of setting exercise prices above the prevailing share prices. SmartPay, having around 30,000 New Zealand customers, has been slowly growing its base in Australia by expanding the network of taxies.
Mr. Bailey further added, "Our strategy is to grow our merchant services business and the purchase of the ProvencoCadmus payments division will enable us to further develop our customer base by adding other SmartPay products and services into a significantly larger market.”