Payment terminal operator Smartpay has received clearance from the New Zealand Commerce Commission for the sale of its NZ business to the US payments company Verifone. The company says it hopes regulatory approval will revive the stalled deal.
The sale was announced last November and was to have been completed by April. Verifone terminated the transaction after the completion deadline was missed.
In a statement to the ASX and NZX on Friday, Smartpay said: “Notwithstanding the termination of the original deal, Smartpay views the clearance as a positive outcome as it clears the way should any subsequent deal with Verifone be agreed.”
When the deal was announced, Smartpay said it planned to focus on the development of its Australian operation, which includes a recent move into merchant acquiring.
In addition to its Australian payments business, Smartpay plans to retain its Retail Radio business in Australia and NZ and its Alipay and WeChat businesses in Australia and NZ.
The NZ business made up the bulk of the company’s revenue in 2018/19, accounting for A$18.5 million out of total revenue of $21.1 million.
However, the company sees the NZ operations as mature and believes there are greater growth opportunities in Australia.
The company’s Australian strategy is “to provide an end-to-end EFTPOS solution in Australia through the addition of our own acquiring capability.”
Smartpay provided a business update last week, saying that with the further easing of COVID-19 restrictions its aggregate transaction revenue has recovered to 95 per cent of pre-COVID levels.