- Integrated Payment Technologies (IP1) has entered into a merger agreement to acquire business services developer Comply Path
- Following a proposed share-for-share transaction, Comply Path will become a wholly owned subsidiary of the company
- InPayTech plans to integrate its patented payment technology with Comply Path’s Bond platform to create a messaging and payment platform
- The transaction is subject to shareholder approval, which the company will seek at its annual general meeting on January 21, 2021
- Integrated Payment Technologies closed in the grey for 3.4 cents per share
Integrated Payment Technologies (IP1) has entered into a merger agreement to acquire business services developer Comply Path.
As its name suggests, Comply Path helps businesses navigate regulatory compliance and provides numerous other data management services through its Bond platform.
Originally, Comply Path was a potential collaboration partner for InPayTech’s ClickVu platform. During the initial collaboration discussions, it became clear just how much the two companies had in common, in terms of culture, capability, and industry vision.
InPayTech now intends to make Comply Path a wholly owned subsidiary of the company. The transaction to achieve this will be implemented as a 100 per cent script for script offer.
InPayTech will issue around 573 million of its shares to the existing shareholders of Comply path.
Those shareholders will have to enter into voluntary escrow deeds, through which 50 per cent of shares which they receive will be escrowed for a year. The other 50 per cent of the shares in InPayTech which they received will be escrowed for two years from issue.
If the transaction goes ahead, Comply Path shareholders will own 50 per cent of InPayTech shares on issue, with InPayTech’s shareholders holding the rest.
After the proposed transaction, InPayTech will integrate its patented payment technology with Comply Path’s Bond platform. This will result in the creation of a unique messaging and payment platform.
The acquisition will also allow InPayTech to diversify and increase its revenues through Comply Path’s licensing and consulting services.
The transaction to acquire Comply Path is still subject to approval from InPayTech’s shareholders. The company will seek this approval through a vote at its annual general meeting, scheduled for January 21, 2020.
Integrated Payment Technologies closed in the grey for 3.4 cents per share.