Dual-listed eftpos terminals provider Smartpay has acquired the business assets of Dunedin-based Technology Holdings Ltd (THL), which is in receivership owing more than $13 million.
In a statement this week, Smartpay — which is listed on the NZX and ASX — said it had paid $3.91m for the assets of THL and its various subsidiaries.
These consisted of the eftpos rental book and associated eftpos terminals, goodwill and other assets including vehicles and equipment.
Smartpay had offered employment to the majority of the employees of THL.
Most had accepted and the offer included Smartpay recognising existing employee entitlements.
The acquisition increased the size of the company’s New Zealand eftpos terminal fleet from about 30,000 to 35,000 terminals and will enable Smartpay to increase its regional presence and reach across the New Zealand payments market.
In their first report, which covered the period from June 11 to August 10, receivers Diana Matchett and Colin Gower, of BDO Christchurch, said THL was the third-largest supplier of eftpos terminals in New Zealand.
They also said THL was the largest provider of on-site services within four hours nationwide through various wholly owned and related party franchises.
The directors advised the impact of the Covid-19 lockdown on their customers’ businesses was detrimental to the company.
Prior to the appointment of an administrator in May, the company had been experiencing significant cash-flow issues.
Following the decision of the company directors to appoint an administrator, ASB Bank considered its options as the first-ranked secured creditor of the company and determined it was reasonable and necessary to appoint the receivers.
The company’s listed directors are Anthony Micheal Guy (Dunedin), Helen Michelle Guy (Whangārei) and Richard Alan Guy (Waipu).
Money due to ASB Bank either directly or through cross guarantees as at August 10 totalled about $13.1m, including accrued interest.
Other secured creditors were subject to the receivers’ review and confirmation of validity.
Outstanding employee preferential claims totalled about $61,000, which crystallised at the date of the appointment of the administrator.
A preferential claim from Inland Revenue had been received for about $300,000. However, it was understood that claim might be amended once outstanding pre-receivership GST returns had been processed.
Unsecured claims were estimated to total about $321,000.
