SYDNEY: Findi Limited (ASX: FND), a digital payments and financial services provider, announced that its majority-owned subsidiary, Transaction Solutions International (India) Pvt Ltd (TSI), has signed a binding agreement to acquire Tata Communications Payment Solutions Ltd (TCPSL), a subsidiary of Tata Communications, for A$75.7 million. The deal requires approval from the Reserve Bank of India (RBI) and other conditions.
This acquisition is a significant milestone for Findi’s ATM business, bringing TCPSL’s 4,600 Indicash ATMs, a White Label ATM platform with a license, payments switch, and an additional 3,000 ATMs. Findi’s in-house payment switch will enable direct access to all banking facilities in India, enhancing connectivity with various payment devices.
Owning the payments switch will eliminate third-party costs and allow Findi to expand its ecosystem between its ATMs and Findipay merchant businesses. The dual capability aims to advance financial inclusion in India.
Findi’s subsidiary, TSI, has received in-principle approval for a White Label ATM license from the RBI. With TCPSL’s existing license, Findi will deploy White Label ATMs under this license once final consent is obtained, expected within the financial year.
Financially, the acquisition is to be funded from Findi’s existing resources, with A$19.7 million paid at completion and an additional A$4.2 million to be paid 12 months later, totaling A$23.9 million in net cash consideration. The acquisition is expected to add A$28-30 million in revenue and A$5-7 million in EBITDA in the first year.
The Indicash ATMs operate on a franchise model, enabling higher margins due to variable costs. Findi Executive Chairman Nicholas Smedley stated that the acquisition would enhance Findi’s reach in semi-urban and rural areas, supporting their strategy to provide comprehensive financial services.
Deepak Verma has been promoted to CEO and Managing Director of TSI, while Mohnish Kumar will transition to Vice Chairman. Alastair Williams, Findi Ltd CFO, will be the acting CFO for TSI India during the recruitment process for a new CFO.
Smedley praised Verma for his operational and commercial excellence and his role in leading the acquisition of TCPSL. He also acknowledged Kumar’s contributions to TSI India’s growth and looks forward to his continued involvement on the TSI Board.
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