FlexiGroup finalises take of Certegy Australia
Point of sale financer FlexiGroup yesterday completed the acquisition of Adelaide-based Certegy Australia Limited from Fidelity National Information Services.Fidelity may be grimacing as the $30 million purchase price also included three million FlexiGroup shares, which have fallen heavily in the recent market turmoil.At the time of the deal in mid-July the shares traded at 47 cents adding $1.41 million to the purchase price, but have subsequently fallen to 33 cents, wiping $420,000 off the value of the deal. The shares were issued yesterday.Certegy is best known for the interest fee payments plan product Ezi-Pay, with the deal acquiring business operations in Australia and New Zealand.The $30 million purchase price comprises half in cash and half in an interest only subordinated vendor note, with final maturity extendible to three years.At the time of the deal, FlexiGroup said it expected the acquisition to increase annual assets financed by more than $250 million a year, while lifting customer contracts originated from around 100,000 to over 250,000. The firm will also pick up a customer database of 450,000 names.Future Ezi-Pay receivables will be funded by two of FlexiGroup's existing funders with two-year committed facilities.FlexiGroup shares closed little changed at 33 cents yesterday on light volume, trading just above twelve-month lows of 27.5 cents but well below highs of $2.74.