Westpac ends talks with Tyro Payments over potential acquisition
Australian banking heavyweight Westpac has announced that it is ending its takeover discussions with Tyro Payments.
Westpac ends acquisition talks with Tyro Payments
Westpac says that after undertaking due diligence, it has decided submitting an offer to acquire 100% of the company’s issued share capital “is not in the best interests of Westpac shareholders at this time”.
Tyro Payments on its part says that on 8 September and 18 October this year, it received “unsolicited approaches” from “several parties” including Potentia Capital Management and Westpac, who expressed an interest in “a potential change of control transaction”.
After “extensive discussions” with the interested parties, Tyro says it will now “cease all current discussions” related to a possible acquisition “as those discussions have not resulted in a proposal that the board believes fairly values Tyro”.
The Aussie paytech says that Potentia Capital had submitted a revised proposal to buy Tyro at an enterprise value of approximately AUD 875 million ($594 million), which it rejected on the basis that it “significantly undervalued” the company.
“Tyro remains open to engaging with any credible change of control proposal it receives that represents compelling value for Tyro shareholders,” it says.
“Based on the board’s assessment of the company’s attractive growth prospects in the Australian payments and business banking markets, no such proposal has been received, and accordingly the board and management will continue to focus on executing on Tyro’s current strategy.”
Founded in 2003, Tyro provides payment solutions as a merchant acquirer as well as business banking products. It claims more than 63,000 Australian merchants as partners, processing AUD 34.2 billion in transaction value in FY22.
