SmartPay has revealed that it paid $6 million for the payments division of ProvencoCamdus.
In an announcement to the NZ Stock Exchange this afternoon, SmartPay says “the deal was completed by an initial payment of $3 million in cash, with the balance of the purchase price to be paid in cash in 90 days”.
The deal was first announced yesterday.
ProvencoCadmus went into receivership earlier this month, after being unable to raise extra capital from existing shareholders to prevent a $45 million debt burden sinking the company.
SmartPay managing director Ian Bailey was head of Cadmus before it merged with Provenco. The new SmartPay, incorporating the former ProvencoCadmus payments division, will move into ProvencoCadmus’ former premises.