Global payments company AfterPay has acquired 90 per cent of the shares in ClearPay, the digital payments solution of ThinkSmart.
The deal will see AfterPay acquire one million shares of ClearPay from ThinkSmart the value of this bulk of shares is around ?10.5m.
As part of the sale, ThinkSmart will keep 10 per cent of the shares in the company, of which 3.5 per cent will be made available for the grant of options under the ESOP. Alongside this, ThinkSmart is entitled to priority to subscribe for shares in any follow-on fundriase of ClearPay.
This acquisition is expected to serve as a platform for AfterPay to launch a UK proposition and take advantage of new opportunities.
ThinkSmart, a B2B and B2C retail POS credit financing service provider, founded ClearPay last year and launched its payment solution earlier in 2018. ClearPay is UK payment solution which enables consumers to purchase products and pay for them over the course of three months.
ThinkSmart founder and CEO Ned Montarello said, ?The Board is pleased to crystallize a significant return on investment for shareholders with the sale of 90% ClearPay, while still retaining an ongoing investment in what, in our view is the leading player in this sector globally.
AfterPay product, ongoing success and go to market strategy is compelling and we are delighted to now be a part of this story. In a market three times the size of Australia the acquisition of ClearPay will assist AfterPay in becoming the dominant player in the UK market.p>
Australia-based AfterPay is a fellow POS credit financing solution and is currently used across Australasia and the US. The company has a current market value of AUD $4m ($2.9m), and serves 2.3 million customers and 17,700 merchants, according to the company.
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