Two weeks after ProvencoCadmus went into receivership, the company’s payments division has been sold, to payment technology provider SmartPay.
In an announcement today, SmartPay managing director Ian Bailey says “The ProvencoCadmus customer base will augment SmartPay’s current clients so that the combined company of over 25,000 terminals installed in the market has the scale and reach to deliver ongoing efficiencies, business opportunities and revenue, both in New Zealand and internationally”.
Bailey says “the shared history, common links and synergy between both businesses is very strong” and that “many of the staff who assisted in establishing Cadmus are now employed by SmartPay, so we understand the ProvencoCadmus payments business very well”.
He also says “We will return to the Cadmus successful growth strategy in place prior to the merger and focus on growing the customer base”.
Bailey was managing director of Cadmus, which he founded, prior to the merger. After the merger, he left to become MD of SmartPay.
Cadmus merged with Provenco last year, but a high debt load, some $45 million, became unsustainable, according to ProvencoCadmus chairman Rick Christie, forcing the merged company into receivership on August 4.
A last-minute appeal for further capital from the company’s existing shareholders failed to raise the required amount.
Ironically, SmartPay will be moving into the former ProvencoCadmus office, as "the current SmartPay offices will not meet the new expanded needs of the business", according to the statement.