Findi Expands Indian Operations with Strategic Acquisition of Indicash ATM Network
FND (FND) Share Update November 2024 Thursday 14th
Findi Expands in India with Acquisition of Tata Communications' ATM Business
Findi Limited has announced a significant expansion in the Indian financial services market through the acquisition of Tata Communications' Indicash ATM business for A$75.7 million. This strategic move is set to enhance Findi's footprint in the region and further its goal of becoming a full-service payments bank.
Instant Summary:
- Findi acquires 4,600 operating ATMs and 3,000 warehoused ATMs.
- Projected FY26 revenue of A$28-30 million and EBITDA of A$5-7 million.
- Acquisition funded by cash reserves and existing facilities.
- Deepak Verma promoted to CEO and Managing Director.
- Findi to leverage White Label ATM platform for expansion.
Acquisition Details
Findi Limited, a digital payments and financial services provider, has announced the acquisition of Tata Communications Payment Solutions Ltd (TCPSL) for A$75.7 million. This acquisition includes the Indicash ATM network, comprising 4,600 operating ATMs and an additional 3,000 ATMs ready for deployment. This move significantly expands Findi's presence in India, enhancing its capacity to serve semi-urban and rural areas.
Financial Projections
The acquisition is expected to be immediately accretive to Findi's earnings, with projected FY26 revenue of A$28-30 million and EBITDA of A$5-7 million. The deal is funded by Findi's existing cash reserves and financial facilities, with a net initial cash settlement of A$19.7 million. Additionally, Findi retains cash tax benefits of approximately A$32.85 million, which will support future growth initiatives.
Strategic Importance
This acquisition marks a strategic milestone for Findi, as it integrates India's first White Label ATM payment switch into its operations. This integration allows Findi to connect directly with various payment devices, enhancing its ability to deliver financial services across India. The acquisition aligns with Findi's broader strategy to become a full-service payments bank, leveraging its expanded ATM network to drive financial inclusion.
Leadership Changes
In conjunction with the acquisition, Deepak Verma has been promoted to CEO and Managing Director of TSI, Findi's majority-owned subsidiary in India. Verma's leadership is expected to accelerate the company's strategic vision and growth in the Indian market. Mohnish Kumar has been elevated to Vice Chairman, continuing to support strategic development efforts.
The acquisition of TCPSL's Indicash ATM business is poised to significantly enhance Findi's market position in India. By expanding its ATM network and integrating a White Label ATM platform, Findi is well-positioned to capture a larger share of the Indian financial services market. This strategic move is likely to boost investor confidence and positively impact Findi's stock price, as it demonstrates the company's commitment to growth and innovation.
Investor Reaction:
Analysts are likely to view this acquisition favorably, as it aligns with Findi's strategic goals and enhances its competitive position in the Indian market. The immediate accretive nature of the deal and the potential for future revenue growth are expected to be key factors in positive investor sentiment.
Conclusion:
Findi's acquisition of the Indicash ATM network represents a significant step forward in its strategic expansion in India. Investors should closely monitor the integration process and the company's ability to leverage its expanded network for growth. This acquisition underscores Findi's commitment to becoming a leading financial services provider in the region.