Spenda's Acquisition of Limepay

Spenda Limited (ASX: $SPX) has signed a binding term sheet to acquire 100% of the issued shares in Limepay Pty Ltd in an all-scrip transaction for a total purchase price of up to $8m. The acquisition is structured in four tranches, with the last three tranches contingent on the achievement of specific performance milestones. Limepay, a B2B SaaS company, generated $2.8m in revenue and a gross profit of $1.4m in FY24, and is trusted by over 200 businesses to provide payment process and embedded finance services.

Executive Commentary on Acquisition

Managing Director Adrian Floate expressed, 'This is a high value acquisition for Spenda that brings product capability, exceptional people, great customers and many opportunities to work together to drive revenue growth. The combined entity will have an expanded product suite that will enhance its competitive positioning in the market and enable access to new customers and market verticals.' Tim Dwyer, Founder and Director of Limepay, added, 'We are extremely excited about the opportunity to create a leader in the embedded finance space by integrating with Spenda and its management team led by Adrian.'

Summary of Acquisition and Outlook

Spenda's acquisition of Limepay for up to $8m in an all-scrip transaction is aimed at accelerating its growth trajectory. The strategic advantages of this acquisition include the addition of significant product capabilities, expansion of the customer base, and the enhancement of the competitive positioning in the market. Limepay's experienced team of financial and payments technology developers is expected to bolster Spenda's product development resources and capability. The merged entity anticipates immediate deployment and revenue generating opportunities, with a focus on rationalizing the roadmap to bring products to market faster and accelerate revenue from existing contracted key customer networks. The Company expects to provide investors with more detail on the acquisition and merged entity once the Company is in receipt of requisite Limepay shareholder approval.