Openpay (ASX:OPY) - CEO, Michael Eidel
CEO, Michael Eidel
Source: Finfeed
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Openpay (OPY) is set to acquire UK-based automotive buy now, pay later provider Payment Assist in a deal worth up to £28.5 million (A$52.7 million)
  • The buy is regarded as one of the largest acquisitions made by a BNPL player in the UK to date
  • Openpay is set to purchase 100 per cent of Payment Assist for £11.5 million (A$21.2 million) upfront, plus an earn-out component of up to £17 million
  • Subject to regulatory approval, the buy is tipped to be completed in the first half of FY22
  • Openpay shares are up 17.7 per cent and trading at $1.66 at 3:22 pm AEST

Openpay (OPY) is set to acquire UK-based automotive buy now, pay later provider Payment Assist in a deal worth up to £28.5 million (A$52.7 million).

In a move tipped to “materially elevate” Openpay’s profile, the buy is being regarded as one of the largest acquisitions made by a BNPL firm in the UK to date.

Subject to regulatory approval, Payment Assist is set to be acquired for £11.5 million (A$21.2 million) upfront, plus an earn-out component of up to £17 million.

Openpay anticipates the buy to be completed in the first half of FY22.

Founded in 2013, Payment Assist said it has serviced 500,000 customers with its payment plans and is targeting a £105.3 million (A$194.7 million) total transaction value for CY21.

Openpay Chief Executive Officer and founder Michael Eidel said the proposed acquisition would secure a significant foothold for Openpay in the UK.

“We want to be a responsible provider of alternative payment and credit solutions to our customers,” he said.

“With this proposed acquisition, Openpay joins with a business that is already embracing UK Financial Conduct Authority regulation and brings a responsible
approach to its customers and merchants.”

The buy is set to triple OPY’s UK revenue and increase group revenue by an estimated 47.4 per cent.

Openpay shares were up 17.7 per cent to trade at $1.66 at 3:22 pm AEST.

OPY by the numbers
More From The Market Herald
Countplus (ASX:CUP) - Incoming CEO, Hugh Humphrey

" Hugh Humphrey appointed CEO of Countplus (ASX:CUP)

Investment services company CountPlus (ASX:CUP) has appointed Hugh Humphrey as the company's CEO, effective July 1.

" Acquisition of Afterpay (ASX:APT) receives approval from Bank of Spain

Payments firm Block has secured a key approval for its multibillion-dollar acquisition of Afterpay (ASX:APT) from…

" Afterpay shares rise after $317.2M placement

Afterpay shares increased nearly 10 per cent today, reaching a premium $26.49 per share following $317.2…
The Market Herald Video

" Payright (ASX:PYR) settles “transformational” funding package to pursue growth

Payright (ASX:PYR) completes its settlement of funding package, comprising a $125 million warehouse facility led by…