New Zealand’s two largest Eftpos operators Provenco Group and Cadmus Technology have reached a conditional agreement to merge their businesses.
In a combined statement released today, the two New Zealand Stock Exchange-listed companies said the merger would create a significant technology company with a global focus and a strong presence in the Asia Pacific region.
In the merger proposal presented to shareholder, the boards of Provenco and Cadmus recommend that the two companies be combined into a new NZSX-listed company with a new name, which is yet to be decided on.
According to the statement, the rationale behind a merger is that both companies have invested significantly in overlapping technology and were also looking to expand into markets that overlapped.
The companies intend to hold shareholder votes on the merger proposal in December.
The proposed deal will see Cadmus shareholders receive one share in the new entity for every 4.6 Cadmus shares held. Provenco shareholders will get one new share for each Provenco share.