Cadmus Technology buys out Eftpos Connect and Cadmus Direct
23 June 2006 | 2530 views | 0
Cadmus (NZX:CTL), New Zealand's leading exporter of payment solutions announced today that it has acquired the remaining shareholding in EFTPOS Connect Limited and Cadmus Direct (Waikato) as part of the company's expanding sales and distribution strategy.
Cadmus Technology has held majority shareholdings in EFTPOS Connect and Cadmus Direct (Waikato) respectively, but decided to increase the holding to 100 percent of both businesses in order to realise the synergies of bringing them both within the Cadmus Group and delivering cost savings to shareholders.
Ian Bailey, Managing Director of Cadmus Technology says that the acquisitions are part of Cadmus Group’s consolidation drive to deliver better services and value to end-users and shareholders alike.
"Cadmus' strategy is about achieving sustained revenue growth, and one key way we've identified is creating synergies and cost savings through the consolidation of acquisitions such as EFTPOS Connect and Cadmus Direct (Waikato)," says Bailey.
Bailey also says that the acquisitions of both companies will result in improved delivery of services to end users as they will now deal with Cadmus Technology directly.
"While it is business as usual for the customers of EFTPOS Connect and Cadmus Direct (Waikato), they will benefit from now being able to deal with Cadmus Technology directly on any issue whether service, upgrade or new installations."
"The completion of the purchase of these two companies will result in savings from the streamlining of some administrative and backroom functions which will no longer be required at the local distribution level and can be now be performed by our existing team. Ultimately this will free up more cash flow which can then either be redirected back into the development of new product or for the benefit of our shareholders which is a win win situation."
Product Rentals Limited, one of the Cadmus Group of companies, also recently completed the settlement of the purchase of the EFTPOS finance book of Dorchester Finance Limited and is well underway to settling the purchase of the EFTPOS rental book from Hanover Finance. These acquisitions are part of Cadmus' strategy to get critical mass in its finance business model so it can expand this into overseas markets.