Zip, which offers POS credit and digital payment services, has agreed to acquire instalment payments provider PartPay for a maximum consideration of NZ$65.8m ($42.1m).
The deal includes an upfront payment of $NZ50m. The remainder will be paid in two tranches.
PartPay has operations in New Zealand that serves as its base, along with the UK, US, and South Africa. The business’ customer base is more than 110,000.
Its founder John O’Sullivan along with other key management members will move to Zip.
Zip CEO and managing director Larry Diamond said: “This transaction marks the beginning of Zip’s global expansion story.
“Whilst we see significant upside in the core Australian business, we feel the timing is opportune to begin investing abroad as we seek to build a global payments business.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“PartPay has proven experience swiftly launching their technology in four different markets, and the potential for many more.
“There is clear and strong alignment between PartPay’s and Zip’s philosophy on responsible credit, and we look forward to working with PartPay’s highly capable management team as we grow our market share in New Zealand and expand into the United Kingdom.”
At the same time, Zip inked an agreement to invest $11.4m in US-based QuadPay, where PartPay owns a stake.
The move will offer Zip a 15% stake in QuadPay. Besides, one Zip director will gain a seat on the QuadPay board.
The PartPay deal is pending shareholder nod and expected to close by this October. The QuadPay deal is expected to be finalised by 27 September 2019.