Zip Co Limited (ASX:Z1P) agreed to acquire remaining 73.75% stake in Payflex Proprietary Limited on September 1, 2021.
Zip Co Limited (ASX:Z1P) completed the acquisition of remaining 73.75% stake in Payflex Proprietary Limited for AUD 15.9 million on January 3, 2022. Total consideration of AUD 15.9 million comprised of a Cash consideration of AUD 6.5 million; 1,477,686 new Zip Co Limited shares issued, valued at AUD 2.4 million, based on the agreed post valuation enterprise value of AUD 21.6 million; Contingent consideration of AUD 6.4 million, payable subject to the satisfaction of prescribed performance milestones, which are based on growth targets relating to the achievement of total transaction volumes and net transaction margins for the twelve months performance period ending June 30, 2022. The contingent consideration is, payable by the issue of up to 1,053,608 Zip shares calculated on a 15-day weighted average price of Zip's shares on the ASX prior to the date of issue, with the balance payable in cash. As at June 30, 2022, Payflex has achieved the performance milestones and accordingly, the full amount will be payable by September 30, 2022; and Black Economic Entity (BEE) holdback amount of AUD 0.6 million, payable within twelve months from the date of acquisition.
Zip Co Limited is an Australia-based company, which is engaged in digital retail finance and payments. The principal activity of the Company is offering point-of-sale credit and digital payment services to customers and providing integrated retail finance solutions to merchants, both online and in-store. The Company offers unsecured loans to consumers, both online and in-store, through the provision of line of credit and installment products. The Company provides services in four countries around the world, in Australia and New Zealand (ANZ), the United States and Canada (Americas). The Companyâs segments include ANZ, Americas, Zip Business and Corporate. ANZ segment offers installment or line of credit products to consumers in Australia and New Zealand. Americas segment offers installment products to customers in the United States and Canada. Zip Business segment provides unsecured loans and lines of credit to small and medium-sized businesses in Australia and New Zealand.
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