Cadmus moves into financing business

Point-of-sale payment solution developer Cadmus Technology has acquired 49 per cent of Eftpos finance rental company Product Rentals in a deal worth more than $1 million.

The acquisition includes Eftpos rental assets sold last December by Cadmus to Product Rentals for $1.71 million.

Cadmus managing director Ian Bailey said last year's asset sale to Product Rentals was made to increase product sales.

Product Rentals subsequently made further rental asset acquisitions, prompting Cadmus to make the 49 per cent acquisition and move into the financing business.

"What this does is bring the finance operation under our control and so we now have an end-to-end offer for our dealers.

"So we can design, develop, manufacture, sell and finance," Bailey said.

Cadmus will settle the deal with an issue of 3,274,289 Cadmus shares to Product Rental shareholders.

Trading of Cadmus shares was stable yesterday at 32c per share, valuing the deal at $1,047,772.

The agreement is conditional on Product Rentals completing the amalgamation of various rental books, finalising financing agreements and due diligence by Cadmus.

The deal includes an option to buy the remaining 51 per cent of Product Rentals within the next 18 months.

Another 3.4 million Cadmus shares will be issued if the option is invoked.

Bailey said Product Rentals' substantial contract ownership and revenue stream were important drivers for the acquisition.