Australia-based Findi hits over 2-decade high on buying Tata Communications unit

Findi

15/11/2024 01:43

Nov 15 (Reuters) - Shares of Australia-based Findi
 FND.AX  jumped to a more than two-decade high on Friday, after
the fintech services provider said it would acquire Tata
Communications'  TATA.NS  payment solutions unit for A$75.7
million ($48.81 million).
    The stock gained as much as 12.2% to A$7.65, its highest
level since Sept. 13, 2002, while the benchmark ASX 200 index
 .AXJO  was up 0.53%, as of 0050 GMT.
    It has risen 14% in value so far this week and is poised for
its best week since mid-October.
    The acquisition of Tata Communications Payment Solutions
will significantly expand Findi's ATM business, adding 4,600
ATMs and a White Label ATM platform with licence, the
Australia-based firm said in a statement, adding that it planned
to deploy 3,000 more ATMs.
    Findi projects the acquisition to boost cash earnings
immediately, forecasting an additional A$28 million-A$30 million
in revenue and A$2 million-A$4 million in net profit after taxes
within the first year of full ownership.
    "The payments platform/switch will enable Findi to connect
directly with all integrated payments devices like MicroATMs,
biometric payment devices and UPI-based cash withdrawals," the
company said.
    The acquisition will be financed through existing resources,
Findi said, adding that it was awaiting approval from the
Reserve Bank of India. 
    
($1 = 1.5509 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by
Subhranshu Sahu)
 ((Nikita.Jino@thomsonreuters.com;))