Smartpay (ASX:SMP) - CEO, Bradley Gerdis
CEO, Bradley Gerdis
Source: ASX
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  • Smartpay (SMP) says its deal with Verifone has been terminated
  • In November, Verifone agreed to purchase Smartpay’s New Zealand Business for NZ$70 million
  • Yesterday, Verifone called off the agreement, claiming an important condition was not met by the April 30 cutoff date
  • Both parties were waiting on clearance for the deal from the New Zealand Commerce Commission, which Smartpay said had been pushed back until May 15
  • Verifone proposed revised terms to complete the deal, but Smartpay says the new deal is not acceptable
  • The company says it will now look for new offers for its NZ business
  • Smartpay is down 27.3 per cent on the market this morning, trading for 32 cents each

Verifone has dropped out of purchasing Smartpay’s (SMP) New Zealand Business, because conditions set out in the sales contract were not met by the agreement date, April 30.

Last November, Verifone agreed to purchase the NZ business and assets for NZ$70 million (approximately A$65 million).

Both parties were waiting on clearance for the deal from the New Zealand Commerce Commission, which Smartpay said had been pushed back until May 15.

Verifone has proposed revised terms to complete the deal, however, Smartpay says this new deal is not acceptable.

“Smartpay has confirmed to Verifone that Smartpay considers the Agreement to now be cancelled and has reserved its rights,” the company told the market.

The company says it will now look for new offers for the NZ business.

“While it’s disappointing to receive this notice, we have a quality business in NZ which has demonstrated resilience through the current COVID-19 period,” Chairman Greg Barclay said.

Smartpay is down 27.3 per cent on the market this morning, trading for 32 cents each at 11:10 am AEST

SMP by the numbers
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