Provenco to pay $11m for Transtech

1.20pm

Electronic payments technology firm Provenco today announced it is to buy Transtech Distributors Ltd in an $11 million deal.

Subject to due diligence, Provenco will pay $6.5 million in cash and shares for Transtech, with further cash payments to be made at the end of each financial year for the next four years up to a total of $4.5 million. The deal is expected to be completed by the middle of October.

Describing Transtech as the leading distributor of retail peripherals in New Zealand, Provenco chairman David Wolfenden said the acquisition would "add a well established technology distribution competency to the Provenco Group and strengthen the Group's current presence in the retail industry".

Transtech's senior management team, Lyn and Rhys Warren, have been contracted to continue managing the Transtech business for at least another four years.

"This is a very exciting acquisition for Provenco. We are very impressed with the business that Lyn Warren and his team have built over the last seven years," Mr Wolfenden said in a statement.

- NZPA