Westpac is believed to be closing in on Tyro Payments, but it is not the only group still looking at the Eftpos payments terminal provider, say sources.
This column understands that another strategic group in addition to Westpac is in a data room set up by the $771m Australian listed merchant terminal business.
DataRoom understands that earlier, Canadian payments group Moneris had been in informal talks to buy Tyro, so it could well be the suitor.
Moneris is Canada’s largest financial technology company that specialises in payment processing and was established as a joint venture in 2000 between the Royal Bank of Canada and Bank of Montreal.
It bought Ernex Marketing Technologies in 2003, providing privately branded loyalty programs and stored-valued gift cards.
Apparently, Goldman Sachs is now involved so may be at the side of the interested party.
Despite the interest from another suitor (the NAB is understood to be long gone after coming close to buying Tyro earlier) Westpac is still seen as the clear front runner.
It is advanced in its work assessing the business and its appetite for an acquisition is understood to be strong.
Particularly telling on Thursday was the announced resignation of chairman David Thodey, with the former Telstra boss replaced by Fiona Pak-Poy in the role, so it may suggest that Mr Thodey sees the writing on the wall.
It follows the departure last month of former chief executive Robbie Cooke, who has taken on the top job at Star Entertainment.
Tyro has been shopping itself around the market after private equity firm Potentia Capital in September bid $1.27 per share, or $658m, for the business in an offer that was swiftly rejected.
Westpac is working with investment bank JPMorgan, and NAB, an earlier suitor, was working with Bank of America, while Jarden has been working with Potentia.
Tyro’s largest shareholder, Atlassian co-founder Mike Cannon-Brookes, agreed to deal his 12.5 per cent stake, which he owns through his private company Grok Ventures, to Potentia, backed by former MYOB boss Tim Reed and ex-Archer Capital executives.
That is if an offer above $1.52 per share does not emerge, although it now appears likely that it will.
Shareholders bought in at $2.75 per share for the initial public offering in 2019, but some now want to cut their losses.
Tyro shares closed at $1.48.5 on Thursday.
Tyro has had a commercial arrangement with Bendigo and Adelaide Bank and some of the top four banks disallowed business customers from using Tyro’s payment systems, causing them to switch to Bendigo.
Westpac, the biggest bank of the top four in payment systems, is keen to win those customers over and confirmed last month it was considering an acquisition of Tyro, saying it would strengthen Westpac’s small business proposition and grow merchant customers in the hospitality and healthcare sectors.
Tyro has about 5.1 per cent of the card payment market in Australia.
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