Australian Cuscal Limited to Acquire Paymark Limited
In a significant development in the payments service industry, Australian company Cuscal Limited has agreed to acquire Paymark Limited, which trades as Worldline New Zealand. The deal will be a cash purchase amounting to a total of A$27 million. Paymark, essentially New Zealand’s Eftpos network, is a major player in the nation’s payments service sector. The operations of Paymark are closely similar to Cuscal’s Australian acquiring and switching business, making it a key part of the New Zealand payments system infrastructure, as stated by Cuscal.
Transaction Details and Financial Implications
The acquisition is expected to be mid-single digit EPS accretive in FY2027 and will deliver mid-teens Return on Invested Capital in FY27. The cash consideration for acquiring Paymark will be funded via an equity raise, which includes a fully underwritten Institutional Placement of A$30 million. Additionally, Cuscal will also undertake a non-underwritten Share Purchase Plan for up to A$3 million. This is expected to cover all transaction costs. Cuscal has assured that minimal integration will be required post-completion, thanks to an experienced in-market management team and standalone operations.
History and Future of Paymark
Paymark has an interesting history. It was previously part-owned by New Zealand’s largest four banks and was purchased by the European-based Ingenico Group in January 2019. Later in 2020, Worldline completed its acquisition of Ingenico, which included Paymark. Since then, Paymark has been owned by Worldline and has operated as Paymark: A Worldline Brand. However, the Paymark brand was set to be retired, with the company set to come under the Worldline global brand. With this acquisition, Cuscal is likely to revive the Paymark brand.
This acquisition represents a strategic move by Cuscal to expand its footprint in the payments service sector and diversify its operations. Given the similar nature of operations between Cuscal and Paymark, the acquisition is expected to offer synergies and help Cuscal further strengthen its position in the market.
For more details about the acquisition, click Here.
