Morningstar sees opportunity for Tryo in buying out SmartPay to expand SME footprint

Smartpay Holdings

17/03/2025 19:40

Corrects typographical error in headline to say 'Tyro' not 'Tryo', corrects day to Monday from Tuesday in the second bullet

** Morningstar says acquisition offer by Tyro Payments TYR.AX of its smaller rival Smartpay SPY.NZ could provide an opportunity for the Australian payment solutions company to grow its scale and offering

** Australian and New Zealand's payment services providers Tyro and SmartPay, on Monday, said the former had offered to buyout SPY, valuing it at NZ$241.1 mln ($140.37 mln)

** Brokerage says SmartPay offers similar products and services as Tyro for small and medium-sized enterprises (SMEs)

** The integration of both companies' technologies and customer bases could lead to improved efficiencies, expanded market reach, and enhanced value propositions for SMEs - Morningstar

** Brokerage finds it too early to incorporate a potential deal into their estimates and flags TYR shares are about 25% undervalued

** Says TYR is undervalued likely due to Reserve Bank of Australia's proposal to ban debit card payment surcharges

** TYR ended Monday at A$0.745

($1 = 1.7176 New Zealand dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))