SYDNEY: Australian payments firm Causal Ltd (ASX: CCL) said on Tuesday it has agreed to acquire Paymark Ltd, trading as Worldline New Zealand, for A$27 million ($17.5 million) in cash, as it pushes to expand its geographic footprint across the Tasman.
The acquisition of the New Zealand payments infrastructure provider will be funded entirely by an equity raising comprising a fully underwritten institutional placement of A$30 million and a non-underwritten share purchase plan (SPP) of up to A$3 million, Causal said.
The deal is expected to be mid-single-digit earnings per share accretive in fiscal 2027 and deliver a mid-teens return on invested capital (ROIC) in the same period, the company said. The purchase price represents an approximate 5 times multiple of Paymark’s forecast net profit after tax for fiscal 2027.
“Paymark represents a strategically aligned opportunity where value creation will be driven by strong standalone economics, limited integration, and the opportunity to deliver sustainable, long-term returns for our shareholders,” Causal Managing Director Craig Kennedy said.
Paymark processes more than 1.5 billion transactions annually and services a blue-chip client base including all major New Zealand acquiring banks. The business will continue to operate as a standalone platform following completion, with minimal integration required, Causal said.
The acquisition remains subject to a mandatory French Works Council consultation process, given Worldline’s corporate structure. Completion is expected by June 30, 2026, assuming Worldline exercises a put option under the parties’ agreement.
Causal reaffirmed its fiscal 2026 guidance, forecasting high-single-digit transaction volume growth translating to mid-teens underlying net profit after tax growth.
The institutional placement will be priced at A$4.00 per share, a 5% discount to Causal’s last closing price of A$4.21 on April 13. The SPP will offer eligible Australian and New Zealand shareholders the opportunity to subscribe for up to A$30,000 worth of new shares.
Causal said no shareholder approvals are required for either the acquisition or the equity raising.
BofA Securities is acting as financial adviser on the acquisition and as lead manager and underwriter for the placement. Bell Gully and Gilbert + Tobin are providing legal counsel.
($1 = 1.5400 Australian dollars)