ThinkSmart today announces the sale of ClearPay, its interest free digital payment proposition to Afterpay Touch Group Limited, a global payments company with a current market value of AUD $4bn created in just 4 years. Afterpay has operations in Australasia and the USA serving approximately 2.3m customers and 17,700 merchants.
ClearPay was founded on ThinkSmart’s market leading proprietary IP platform following a period of significant investment and commenced trading in July 2017 and launched in March 2018, creating a first to the UK market consumer payment offer in key retail sectors.
The deal with ThinkSmart is expected to create a runway from which Afterpay will launch a new UK market leading proposition in the UK, replicating its phenomenal success overseas.
ThinkSmart’s subsidiary, ThinkSmart Europe Limited (“TSE”), has sold 90% of the issued shares in ClearPay to Afterpay for 1,000,000 shares (currently valued at c. £10.5m) in the capital of Afterpay to be issued to TSE.
This will strengthen the company’s balance sheet, further enabling it to focus on leveraging its proprietary IP ‘SmartCheck’ and exploit new market opportunities.
In addition, the sale provides ThinkSmart with a 10% retained shareholding in ClearPay. Of which TSE will make available up to 3.5% of the shares in ClearPay for the grant of options under the ESOP. TSE also has rights of pre-emption to subscribe for shares in ClearPay in any follow on fund raise.
Commenting, Ned Montarello, said:
“The Board is pleased to crystallize a significant return on investment for shareholders with the sale of 90% ClearPay, while still retaining an ongoing investment in what, in our view is the leading player in this sector globally.
Afterpay’s product, ongoing success and go to market strategy is compelling and we are delighted to now be a part of this story.
In a market three times the size of Australia the acquisition of ClearPay will assist Afterpay in becoming the dominant player in the UK market.”
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