Smartpay Holdings Limited (ASX:SMP) Finalises Scheme with Shift4 Payments
Scheme Overview
Smartpay Holdings Limited has entered into a Scheme Implementation Agreement with Shift4 Payments, LLC. Under the agreement, Shift4 will acquire all shares of Smartpay for NZ$1.20 per share in cash, representing a 46.5% premium over Smartpay’s 90-day trading average price.
Financial Implications
The proposed acquisition values Smartpay at an implied equity value of A$274.1 million (NZ$296.4 million) and an enterprise value of A$282.8 million (NZ$305.8 million). The acquisition multiple is approximately 14.2x based on the projected FY25 Normalised EBITDA of NZ$21.5 million.
Board and Shareholder Support
The Smartpay Board recommends shareholders vote in favour of the Scheme, highlighting it as the most compelling value proposition. The Scheme has the support of significant shareholder Microequities Asset Management, which controls approximately 13.3% of Smartpay shares and intends to vote in favour of the Scheme.
Executive Comments
Marty Pomeroy, CEO of Smartpay, stated, “Smartpay remains focused on being the payments partner of choice, investing and adding scale to our existing Australian and New Zealand business. The proposed transaction, if completed, 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.”
Next Steps
Smartpay will seek shareholder approval at a special meeting expected in Q3 2025. Upon approval and satisfaction of all conditions, the Scheme is anticipated to be completed in Q4 2025.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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