Afterpay, Touchcorp In $50m Merger
Fintech start-up Afterpay and payment systems outfit Touchcorp plan to merge to form a new public company. The two outfits are hoping to have ther new combined company listed on the ASX.
Afterpay, already ASX-listed, is a retail payments company that offers retail customers a “buy now, receive now, pay later” service – sometimes referred to as a layby service – that does not require them to enter into traditional loan arrangements or pay upfront fees.
It’s said to have become one of the ASX’s hottest stocks after listing in April last year.
Touchcorp offers Visa and Mastercard payment systems to the operators of Web stores, but has so far found limited acceptance by the Web-based sellers.
Under the new arrangements, Afterpay and Touchcorp will merge, creating a new integrated company valued at between $350 million and $500 million and owned 64pc by Afterpay, 36pc by Touchcorp.
Afterpay chairman Anthony Eisen will become the new company’s executive chairman while current Afterpay CEO Nick Molnar will become the MD.