Aussie payments company Tyro has got a bunch of suitors lining up for its biz.
👉 Background: Tyro launched back in 2003 as a payments company. Since then, it has become Australia’s largest EFTPOS provider outside the Big Four banks.
👉 What happened: Tyro listed on the ASX in December 2019 and has processed more than $34.2 billion in transactions. But over the last 12 months, its share price has dropped more than 60%. Yikes!
👉 What else: Enter opportunistic acquisition offers. Recently, private equity firm Potentia made an offer to Tyro (which it rejected) - but it didn’t rule out a sale altogether. And this piqued the interest of Westpac - who is now looking to buy Tyro to grow its business banking division.
💡If you own the business transactions, you’ve got a good chance of owning the business customer. This potential acquisition is a way for Westpac to 'trojan' its way into a company's banking world.
💡By owning transactions, Westpac will have its best chance to win over that customer’s main transaction account. And by owning the main transactions account, Westpac will have a big chunk of the data relevant for a business (think: cash flow, payroll, expenses)
💡This data can help Westpac learn about these small businesses and sellthem new banking products, like business loans, equipment loans or investment products. And since Tyro has over 61,000 Australian businesses on its books, this could be worth more than its weight in gold-plated-payment-terminals.
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