Potentia withdraws offer to acquire Tyro Payments
Potentia have advised Tyro Payments it does not intend to proceed with a proposal to acquire the company, with Tyro announcing that discussions with Potentia in relation to a possible change of control proposal have now ceased.
Potentia’s decision to withdraw follows Tyro granting them due diligence, as well as extensive and advanced negotiation of material commercial terms and draft transaction documents. Tyro facilitated engagement with regulators to understand the complexity and anticipated timeframes to complete a transaction relating to the proposed private equity ownership of an Authorised Deposit-taking Institution (ADI). Tyro also worked with Potentia to develop processes that could potentially address regulatory requirements to reduce risk to Tyro by providing increased confidence of completion in a reasonable timeframe.
Tyro have stated that its prospects remain strong, as highlighted in Tyro’s most recent FY23 guidance on 15 May 2023 in which gross profit was upgraded to a range of $192 million to $194 million and EBITDA was upgraded to a range of $41 million to $43 million. In addition, Tyro announced last week it now offers Tap to Pay on iPhone to accept contactless payments.
Tyro Chair, Fiona Pak-Poy commented, “The Board and management team have worked with commitment and in good faith to facilitate a potential change of control transaction to be put to our shareholders for consideration. We have appreciated Potentia’s engagement and are disappointed that they were ultimately unable to deliver a revised offer.”
“While these have been long and drawn-out discussions, the refreshed leadership team under Jon Davey has continued to deliver substantial operational achievements, including launching Tyro Pro, Tyro Go and Tyro BYO (Tap to Pay on iPhone). These performance outcomes have strengthened the financial and market position of Tyro as we deliver our clear strategic roadmap.”
“The Board and management are confident and excited about the Company’s outlook and the opportunities to deliver value for our customers and shareholders.”
