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Tyro Payments (ASX:TYR) to acquire Medipass Solutions

Technology
ASX:TYR      MCAP $487.3M
10 May 2021 13:30 (AEST)
Tyro Payments (ASX:TYR) - Chief Executive Officer, Robbie Cooke

Source: Business Insider

Tyro Payments (TYR) has entered into an agreement to acquire digital health payments business Medipass Solutions.

Based in Melbourne, Medipass is a health fintech company that has created a digital health payment platform. The platform allows healthcare providers to accept healthcare payments without the need for a terminal.

Under the agreement, Tyro Payments will acquire 100 per cent of issued securities in Medipass from its founder Peter Williams, CEO Jonathan Davey and NAB Ventures. 

The company will pay a total consideration of $22.5 million for the acquisition, consisting of roughly 60 per cent cash and 40 per cent Tyro shares. This would equate to approximately $13.5 million cash and 9 million worth of shares in Tyro Payments. 

Under the acquisition, Medipass’ digital health payments platform will be integrated with Tyro’s card-present health solution. This will allow the company to provide both card-present and cardless transactions going forward.

As a part of the integration, Medipass’ team of 20 people will join Tyro Payments, with Peter Williams and Jonathan Davey both remaining with the business. The Medipass team will help form a new Tyro health business unit, led by Jonathan.

Tyro Payments’ Managing Director and CEO, Robbie Cooke, welcomed the entire Medipass team to the company.

“The rise of telehealth consultations, coupled with the increase in eCommerce and cashless payments more generally, means offering cardless digital payment options to patients is a commercial necessity for healthcare practitioners,” he said.

“Medipass’ functionality, deep insurer integrations, and user-friendly simplicity are unique. By combining it with our existing card-present payment solution, we can offer a simple, unified solution to healthcare practitioners for payments and claiming, as well as increasing the health providers working with us,” he added.

Tyro Payments expects the acquisition transaction to complete sometime this month. 

Tyro Payments is up 5.56 per cent, trading at $3.61 per share at 12:22 pm AEST.

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