Cuscal (ASX:CCL) has struck a deal to acquire New Zealand payment service provider Paymark from Retail International Holding, also known as Worldline, for AU$27 million in cash, according to a Tuesday fling with the Australian bourse.
The deal is expected to be mid-single digit accretive to earnings per share in fiscal 2027 and yield a return on invested capital in the mid-teens range in the same year, per the filing.
Following the acquisition, which is expected to close by June 30, Cuscal expects to have a common equity Tier 1 ratio of around 18% to 19%, in line with the company's target range and above minimum regulatory requirements.
"The acquisition delivers immediate scale in New Zealand, a familiar payments environment and represents a logical extension of Cuscal's core infrastructure‑led business model," the company said.
Cuscal will fund the consideration through a fully underwritten institutional equity placement of AU$30 million. It will also launch a non-underwritten share purchase plan for up to AU$3 million.
The placement will be at a fixed offer price of AU$4 per share, resulting in about 7.5 million new ordinary shares being issued, representing 3.9% of Cuscal's existing issued shares.
The company also reaffirmed its fiscal 2026 guidance of after-tax underlying net profit growth in the mid-teens.