Cuscal Limited (ASX: CCL) has announced its intention to acquire 100% of Paymark Limited, operating as Worldline New Zealand, from Retail International Holding S.A.S. (Worldline) for a cash consideration of A$27 million. Cuscal is an authorised deposit-taking institution (ADI) with the licences, connectivity, and processing capability to support all payment types and regulated data services in Australia. The acquisition is subject to a mandatory French Works Council consultation process and Worldline exercising a put option, with completion anticipated by 30 June 2026. This move is poised to enhance Cuscal’s scale and geographic diversification within the payments sector.
Paymark is described as a leading payments service provider in New Zealand, integral to its national payments infrastructure, with operations akin to Cuscal’s existing Australian acquiring and switching business. The acquisition is expected to be mid-single digit EPS accretive in FY27E and deliver mid-teens Return on Invested Capital (ROIC) in FY27E, representing an attractive ~5x FY27E Paymark Net Profit After Tax multiple. Cuscal noted minimal integration requirements due to Paymark’s experienced in-market management team and standalone operations. Following completion, Cuscal’s CET1 ratio is projected to be approximately 18%-19%, aligning with its target range and exceeding regulatory minimums.
To fund the A$27 million acquisition and associated transaction costs, Cuscal will undertake an equity raising. This includes a fully underwritten Institutional Placement aiming for A$30 million, priced at A$4.00 per share, representing a 5.0% discount to its last close price. Additionally, a non-underwritten Share Purchase Plan (SPP) will target up to A$3 million, allowing eligible Australian and New Zealand shareholders to subscribe for up to A$30,000 worth of new shares. Cuscal also reaffirmed its FY26 guidance, expecting high-single-digit transaction volume growth to translate into mid-teens full financial year 2026 Underlying Net Profit After Tax growth.
