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Johannesburg - Technology group Altech said on Thursday it has purchased 50% plus 1 share in NuPayment Solutions.
Altech signed a share purchase agreement to acquire the majority shareholding in NuPay, together with ancillary agreements from Absa Bank for a purchase consideration of R53.5m on May 29 2009.
NuPay is a payments processing company focused on the automation of electronic debit orders, providing authenticated and non-authenticated managed transactions within the card based and electronic funds transfer environments.
"This acquisition perfectly fits Altech's strategy of growing its annuity revenue, which accounted for 79% of Altech's total revenue before this transaction.
"It also grows the critical mass of our IT division, further complementing our existing operations. NuPay processes in excess of 500 000 successful transactions per month, via c. 2 800 points-of-presence.
"The acquisition allows Altech to supply the switching services, POS devices and related software, as well as provide ongoing maintenance and support to NuPay, which boasts the largest number of installed POS terminals in South Africa outside of the banking industry," said Altech CEO Craig Venter.
NuPay complements Altech Card Solutions' transaction switching division by providing expansion opportunities into new markets, increased transaction switching volumes and the possibility of exploiting diverse transactional and processing capabilities.
NuPay also offers additional services such as a call centre and field support, which will be expanded to include all of the merged products and services within Altech card Solutions.
"The transaction has various positive spin-offs for Altech and NuPay. NuPay, through its extensive presence in the micro-finance payments industry, ensures that increased volumes of transactions will be processed through the combined switching capabilities.
"These transactions will continue to be acquired by Absa. The transactions are also largely done via Point of Sale terminals, which in future will be supplied by the Altech IT division" said Venter.
He added that substantial synergies exist between NuPay and Altech's other business units, particularly Altech Netstar and Altech Autopage Cellular, which have 500 000 and 1 million subscribers respectively, that manage their monthly subscriptions mainly via debit order.
To preserve current efficiencies and standards, Altech will retain existing NuPay management and staff, whilst providing supporting administration services and strategic direction to the company.
- I-Net Bridge