- Openpay (OPY) is set to acquire UK-based automotive buy now, pay later provider Payment Assist in a deal worth up to £28.5 million (A$52.7 million)
- The buy is regarded as one of the largest acquisitions made by a BNPL player in the UK to date
- Openpay is set to purchase 100 per cent of Payment Assist for £11.5 million (A$21.2 million) upfront, plus an earn-out component of up to £17 million
- Subject to regulatory approval, the buy is tipped to be completed in the first half of FY22
- Openpay shares are up 17.7 per cent and trading at $1.66 at 3:22 pm AEST
Openpay (OPY) is set to acquire UK-based automotive buy now, pay later provider Payment Assist in a deal worth up to £28.5 million (A$52.7 million).
In a move tipped to “materially elevate” Openpay’s profile, the buy is being regarded as one of the largest acquisitions made by a BNPL firm in the UK to date.
Subject to regulatory approval, Payment Assist is set to be acquired for £11.5 million (A$21.2 million) upfront, plus an earn-out component of up to £17 million.
Openpay anticipates the buy to be completed in the first half of FY22.
Founded in 2013, Payment Assist said it has serviced 500,000 customers with its payment plans and is targeting a £105.3 million (A$194.7 million) total transaction value for CY21.
Openpay Chief Executive Officer and founder Michael Eidel said the proposed acquisition would secure a significant foothold for Openpay in the UK.
“We want to be a responsible provider of alternative payment and credit solutions to our customers,” he said.
“With this proposed acquisition, Openpay joins with a business that is already embracing UK Financial Conduct Authority regulation and brings a responsible
approach to its customers and merchants.”
The buy is set to triple OPY’s UK revenue and increase group revenue by an estimated 47.4 per cent.
Openpay shares were up 17.7 per cent to trade at $1.66 at 3:22 pm AEST.