PAX GLOBAL plans to acquire all the shares of Pax Technology Australia PTY Ltd
PAX GLOBAL plans to acquire all the shares of Pax Technology Australia PTY Ltd to strengthen its global sales network and enhance brand awareness in the Australian and New Zealand markets. The acquisition cost is 5.4 million Australian dollars, which can be adjusted to a maximum of 30 million Australian dollars based on the target company's financial performance. The target company is a provider of electronic payment terminals and has shown strong growth in the past few years. This acquisition will bring growth opportunities to the group, achieve better resource planning and efficiency, and enable rapid response to market changes
According to the news from Zhitong Finance and Economics APP, PAX GLOBAL (00327) announced that on August 5, 2024, the buyer, Pax Technology Australia PTY Ltd. (a wholly-owned subsidiary of the company), entered into a share purchase agreement with the sellers, Eagle Fintech Australia PTY Ltd. and Retech Solutions Ltd.
Upon completion, the target company, Pax Technology Australia PTY Ltd, will be indirectly owned 100% by the company and will be accounted for as a subsidiary of the company. The consideration for the acquisition, i.e. the initial payment, is approximately AUD 5.4 million, which may be further adjusted up to a maximum of AUD 30 million based on the financial performance of the target company for the two consecutive financial years ending in 2024 and 2025.
The target company mainly provides electronic payment terminals in Australia and New Zealand, showing strong growth momentum in the past few years. The board of directors believes that the acquisition will strengthen the group's global sales network and serve as a cornerstone for the group's operations in Australia and New Zealand, acting as a catalyst for further growth.
The expected synergies from the target company and the commercial rationale for the acquisition include the following aspects: 1. Strengthening the group's global sales network, especially in Australia and New Zealand; 2. Establishing direct sales channels for target customers in the Australian and New Zealand markets and reducing costs to achieve better resource planning and efficiency; 3. Responding quickly to potential demand fluctuations, expected changes, and other dynamic market shifts; and 4. Enhancing brand awareness through the target company's local presence, and establishing stronger and closer connections with local terminal customers and other stakeholders
