Westpac in talks to acquire Tyro Payments

Westpac says it is in preliminary talks with acquisition target Tyro Payments over a fintech acquisition as the banking giant seeks to gain more share in the lucrative small business market.

Tyro announced last month that a private equity-led consortium A non-binding bid of $1.27 per share for the company And Tyro’s largest shareholder, tech billionaire Mike Cannon-Brookes, has indicated he is prepared to sell his 12.5% ​​stake.

With speculation rife in the market that other bidders might emerge, Westpac said on Tuesday morning: Australian Financial Review He hired an investment banker from JP Morgan to help run the numbers for a possible deal.

Westpac said there was no contract certainty. But he also explained that acquiring Tyro, the fifth-largest provider of eftpos services outside the Big Four, would strengthen the bank’s position as a provider of payment services to small and medium-sized businesses.

Westpac said in the ASX announcement:

In a statement, Tyro said it had received interest from several potential buyers, including Westpac, but none of those approaches were advanced or robust enough to warrant further disclosure. .

“Tyro is in preliminary discussions with selected parties in the context of maximizing value for all shareholders,” Tyro told ASX.

“We state that these approaches are non-binding in nature, highly conditional, and that there is no binding offer or certainty that any type of transaction will materialize.”