AFTERPAY AND TOUCHCORP MERGER IS NOW COMPLETE
13 July 2017, Written by David Simmons
THE anticipated merger of Afterpay and Touchcorp is now complete and effective from 6 July 2017.
The two companies have joined forces to create a new group called Afterpay Touch Group (ASX: APT).
The company will now enter a transition period where new appointments to the main management team will take place, as well as the integration of the Touchcorp technology and personnel.
Executive Chairman Anthony Eisen says the completed merger will mean the company can now make significant technological advancements.
"The Afterpay and Touchcorp merger represents a significant milestone and will enable Afterpay to be fully integrated from a technology perspective and boost the growth and earnings potential of the combined business," says Eisen.
"I am excited by the prospect of what Afterpay Touch Group can achieve with the expanded skill set and resources now working together."
"We have a highly talented team and we are confident that the management structure sets us up well for maintaining a focused approach to business growth and performance while at the same time bringing the companies together from an operational perspective and realising merger synergies."
Touchcorp was responsible for the bulk of the technology behind the Afterpay system, which allows users to 'buy-now pay-later' with no excess fees or charges attached.
Afterpay boasts large clients like Myer, Big W, Officeworks, and Woolworths who pay to use the system.
Following the merger Afterpay Touch Group will appoint David Hancock to the role of Afterpay Touch Group Head where he will be responsible for bringing the Afterpay and Touchcorp businesses and teams together.
Executive Director, Nicholas Molnar, will continue to focus on the performance and growth of the Afterpay business in Australia and internationally.
The group saw significant growth in June 2017, with underlying quarterly sales growing 87 per cent to $271 million.
The company now has over 6000 merchants in the system and over 840,000 customers as of 30 June 2017.
Following the announcement Afterpay Touch Group (ASX: APT) shares are trading 1.98 per cent up to $3.09.
Author: David Simmons