Australia-based Findi hits over 2-decade high on buying Tata Communications unit
Shares of Australia-based Findi jumped to a more than two-decade high on Friday, after the fintech services provider said it would acquire Tata Communications' 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 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)
