Payments provider ProvencoCadmus has signed an agreement to sell its Vantex division to global technology distributor Ingram Micro.
Vantex is ProvencoCadmus’ distribution arm; it distributes retail point of sale, barcoding, mobile and wireless technology in NZ and Australia.
The deal, worth $22.5 million, is described in a statement ProvencoCadmus released to the NZ Stock Exchange as being “a significant step in the recapitalisation strategy as advised to shareholders, with proceeds to be applied to reduce ProvencoCadmus’ bank debt”.
The sale is subject to several conditions, including the approval of ProvencoCadmus shareholders.
A shareholder meeting will be held early next month to vote on the proposed sale.
In a media statement announcing its half-year results to December, ProvencoCadmus noted “Vantex, as a non-strategic technology distribution business, has been targeted for divestment and this divestment in now in its final stages”.
Ingram Micro was tipped as a buyer as early as October, when the New Zealand Herald’s Stock Takes column noted that Ingram was rumoured to be one of the bidders.