Infrastructure investor Infratil today completed the sale of its public transport ticketing subsidiary Snapper Services to Allectus Capital.
As reported in Reseller News last month, a conditional buyer was in the wings waiting to pick up Snapper. The sale price was not revealed today but described as a "nominal consideration".
Snapper had a book value in Infratil's accounts of $8.8 million at the end of its 2018 financial year.
Infratil, which is currently buying Vodafone NZ, said it had initiated a strategic review of its investment in Snapper in December 2017. Allectus Capital was granted exclusivity in January this year.
A conditional sale agreement was executed in February, with the sale conditional upon consents which have now been received.
Allectus is owned by ICM Ltd and London-listed UIL Ltd, a fund managed by ICM. It was founded by Duncan Saville, a director of Infratil's Morrison & Co, who is also the Allectus' chairman.
It oversees and support around US$300 million in technology investments, principally in the Asia Pacific region and the UK.
Allectus also has strong experience in transit and payments platform investments and will be looking to grow the Snapper footprint globally, Infratil said.
Infratil said it confirmed the sale of Snapper was considered and approved by the independent directors of Infratil, who were satisfied that the transaction was negotiated and entered into on an arm’s length commercial basis and that the directors associated with Morrison & Co have not exercised any undue influence over the board in its decisions in respect of the transaction.
Snapper, was established in 2008 as a low cost but technologically cutting-edge provider of ticketing services.
"It has delivered exceptionally well, thanks to an excellent technological platform and to its dedicated team," Infratil said.
"Infratil and the Snapper team are appreciative of the backing of the people of the Wellington region where the distinctive card with its fish logo has become something of a mascot."