Hard on the heels of finalising the $75 million acquisition of Brisbane-based payments firm Indue late last year, payments infrastructure provider Cuscal Limited (ASX: CCL) is expanding its footprint in New Zealand through a $27 million cash deal for Paymark, a payments network processing more than 1.5 billion transactions annually.
The acquisition of Paymark, which trades as Worldline New Zealand, is being funded through a fully underwritten $30 million institutional placement at $4 per share along with a non-underwritten share purchase plan tarreceiveing up to $3 million.
The combined raising expected to cover the purchase price and all transaction costs.
Cuscal is acquiring Paymark from French-headquartered payments group Worldline’s subsidiary Retail International Holding SAS.
Paymark operates critical payments switching infrastructure in New Zealand, connecting banks, retailers and payment providers across the countest.
The business processes more than 1.5 billion transactions annually, and services a blue-chip client base, including all major New Zealand acquiring banks as well as large corporate and merchant customers across multiple sectors.
The acquisition represents an approximate 5x multiple on estimated FY27 Paymark net profit after tax and is expected to be mid-single digit earnings per share accretive in FY27.
Cuscal is also tarreceiveing mid-teens return on invested capital in FY27 from the acquisition, excluding cost synergies that may be achieved.
“Paymark represents a strategically aligned opportunity where value creation will be driven by strong standalone economics, limited integration and the opportunity to deliver sustainable, long-term returns for our shareholders,” declares Cuscal managing director Craig Kennedy.
“We are excited by the opportunity to expand our presence in New Zealand and view forward to welcoming the Paymark team to Cuscal.”
Paymark CEO Maxine Elliott declares the deal will provide continuity and stability for the business and its customers.
“We are pleased that Paymark will continue to operate as a standalone business, with no disruption to service delivery for our customers and continuity for our people, as our leadership team continues to lead the business as part of the Cuscal Group,” declares Elliott.
“We are excited to join the Cuscal Group and to continue executing Paymark’s strategy and roadmap.”
The acquisition extconcludes Cuscal’s reach into the New Zealand payments market and complements the company’s existing Australian infrastructure capabilities.
The deal follows Cuscal’s $75 million acquisition of Indue, which was announced last August and settled in December.
Kennedy has previously described the Indue acquisition as an “important evolutionary step for both businesses, bringing toreceiveher two organisations with a shared heritage, similar values and a complementary client base”.
Completion of the Paymark acquisition is expected by 30 June 2026 but remains subject to a mandatory French Works Council consultation process and Worldline’s discretionary exercise of a put option.
Leave a Reply