Smartpay attracts $274m takeover proposal from US payments company Shift4

US payments provider Shift4 Payments will look to expand its global footprint with the proposed acquisition of New Zealand-based point-of-sale solutions firm Smartpay Holdings (ASX: SMP).

Shift4 has offered a best and final price of $1.11 per share for Smartpay, representing a 46.5% premium to the company’s 90-day volume-weighted average price of $0.76 and an implied equity value of $274.1 million.

The deal is subject to Smartpay shareholder approval, consent under the NZ Overseas Investment Act 2005 and approval from the NZ High Court.

Independent committee

Smartpay sells tailored payment solutions through an extensive distribution network across Australia and NZ that supports a diverse base of more than 40,000 merchants.

After receiving various unsolicited and non-binding takeover offers, the company established an independent committee comprising directors and external advisers to consider the risks and rewards of each.

The committee concluded that the Shift4 Payments offer represented the most compelling value, accelerating the realisation of value for Smartpay shareholders while mitigating long-term risks.

Adding scale

Smartpay chief executive officer Marty Pomeroy said the proposed takeover would add scale to the company’s existing business in Australia and NZ.

“This transaction will see Shift4 partner with Smartpay to deliver an enhanced value proposition to our customers, employees and other stakeholders while delivering immediate and derisked value to our current shareholders,” he said.

The Smartpay board has unanimously recommended the transaction to shareholders and expects to finalise the acquisition before year end.

Strategic presence

Shift4 Payments’ technology processes over $400 billion worth of transactions each year in more than 45 countries, servicing over 200,000 customers across more than 100 payment methods.

Shift4 chief executive officer Taylor Laubner said the Smartpay acquisition would deepen the company’s strategic presence in Australia and NZ and allow it to offer a full suite of software and payments solutions to customers in the region.

“By combining our payment infrastructure with Smartpay’s distribution capabilities, we are well positioned to go to market at scale in the region with our leading point-of-sale products and services for restaurants, stadiums, hotels and unified commerce merchants,” he said.

Mr Laubner said the company had previously executed a similar strategy of “combining acquisitions to deliver a superior integrated payment experience” with payment providers in Germany, the UK and Ireland.