Allied Technologies (Altech) has concluded an agreement with Itas Services regarding the acquisition of the remaining 50% less one ordinary share equity interest in Altech NuPay.
The full value of the deal is R80 million, says Altech. The company acquired its controlling interest in NuPay, consisting of a 50% plus one share equity interest, in 2009.
NuPay forms part of the Altech Card Solutions division of Altech, which is to be integrated with the Bytes Secure Transaction Solutions business, within the Altron TMT sub-group of Altron.
Altech CEO Craig Venter says the acquisition of the remaining minority shares will add "significant value", particularly in light of the creation of Altron TMT, and the amalgamation of the Altech and Bytes Technology Group businesses.
"The full ownership of Altech NuPay enhances our strategy of becoming a market leader in every sphere in which we operate. The Altech NuPay business fits well with the Altech Card Solutions and Bytes Healthcare Solutions businesses of Altron TMT and the transaction enables Altron TMT to realise the synergies of its transaction businesses as part of the broader Altron TMT restructure."
NuPay developed an electronic payment solution that facilitates deferred payments by swiping customer debit cards at a point of sale device, providing binding and automated authenticated debit transaction services. Altech says this development was the basis on which the current authenticated early debit order system was developed.
Altech NuPay has since expanded its product range and specialises in solutions for payment and collection through a number of products and services, all focusing on the collection of transactions from multiple sources.
The purchase consideration will be settled at Altech's election, in cash or via the issue of Altron participating preference shares, which will be placed on behalf of Itas Services to generate the cash equivalent of the purchase consideration.
The settlement of the purchase consideration is not expected to have a significant effect (less than 3%) on Altron's earnings, headline earnings, adjusted headline earnings and net asset value per share.
Share