Cuscal (ASX:CCL) has entered into an exclusive arrangement to acquire 100% of Paymark, trading as Worldline New Zealand, for a total cash consideration of $27 million.
The move marks an expansion for the Australian payments provider, allowing it to leverage Paymark's established position as a market leader in New Zealand's payment infrastructure.
The acquisition is expected to provide immediate geographic diversification and scale, with operations closely mirroring Cuscal’s existing Australian acquiring and switching business.
To fund the transaction and cover associated costs, Cuscal has launched a total equity raising of up to $33 million.
This comprises a fully underwritten $30 million institutional placement alongside a non-underwritten share purchase plan aimed at raising an additional $3 million.
The deal is projected to be mid-single-digit EPS accretive by FY27E, delivering a mid-teens return on invested capital.
Despite the capital outlay, Cuscal expects to maintain a robust Common Equity Tier 1 ratio between 18% and 19%, remaining well above regulatory minimums.
The completion of the deal remains subject to a mandatory French Works Council consultation process involving the seller, Retail International Holding S.A.S. (Worldline).
Following this, Worldline may exercise a put option to formalise the sale.
Pending these procedural requirements, the acquisition is slated for completion by June 30.
Cuscal has also reaffirmed its FY26 financial guidance.