Cadmus buys Hanover's eftpos finance book

Electronic payment solutions company Cadmus has bought the Hanover Group's eftpos finance book for an undisclosed sum.

Cadmus will make the acquisition through its subsidiary Product Rentals (PRL).

Cadmus said while PRL would manage the new acquisition, it would remain a stand-alone, arm's-length entity in the Cadmus Group.

Cadmus said the deal would increase Product Rental's eftpos rental business by more than $10 million, and would turn Cadmus into the biggest eftpos terminal rental company in the New Zealand market.

Cadmus managing director Ian Bailey said the deal would provide the company with the critical mass to enable it to access better funding lines, and would help the company more into more competitive overseas markets.

"The acquisition of Hanover's eftpos finance book is a strategically strong and positive move for Cadmus because it will both add to the positive revenue stream for the business as well as continue to provide a strong cashflow business to allow us to penetrate other international markets with a range of innovative finance options," Mr Bailey said.

Hanover's chairman Greg Muir said the sale was about timing and rationalization for Hanover.

"Hanover's focus remains large scale and/or high value relationship lending, while the eftpos finance book fits better with the supplier of the underlying technology," he said.

Cadmus said it was continuing to look for other potential business sectors which would grow the company and increase shareholder value.

Shares in Cadmus were unchanged in early trading today at 21c, having ranged between 18c and 34c over the past year.

- NZPA