Electronic payment solutions specialist Spenda (ASX:SPX) has executed a binding term sheet to acquire 100% of the issued capital of Limepay for up to $8 million, in an all-scrip transaction.
The acquisition is comprised of four tranches, with the last three tranches contingent on the achievement of specific performance milestones. If all milestones are achieved it will add a minimum of $7.2 million in Annual Recurring Revenue to Spenda.
“This is a high value acquisition for Spenda that brings product capability, exceptional people, great customers and many opportunities to work together to drive revenue growth. The combined entity will have an expanded product suite that will enhance its competitive positioning in market and enable access to new customers and market verticals," Managing Director, Adrian Floate, said.
"From an operational perspective, the addition of a high-quality team of banking software engineers will accelerate our current project pipeline and improve our operational efficiency.
“We have complementary product roadmaps, and the ability to scale payment flows across the combined entity which we expect will increase our wallet share per customer.”
Limepay, established in 2019, provides payment process and embedded finance services via a robust and scalable cloud-based platform comprising a portfolio of software tools to enable corporates and financial institutions to provide white-labelled embedded finance solutions to their customers.
These include a suite of leading payment technologies to fuel business growth, encompassing payment acceptance, instalment options, lending, working capital, marketplace solutions and SaaS offerings.
In FY24, Limepay generated $2.8 million in revenue (unaudited) and a gross profit of $1.4 million (unaudited).
Limepay has a robust pipeline of enterprise level clients at various stages in the sales cycle, that are expected to contract to use Limepay’s products, as well as take up Spenda’s products suite.
