Pax Global (00327.HK) announced on August 5th that the purchaser (a wholly-owned subsidiary of the company) and the seller signed a share purchase agreement regarding the acquisition on August 5th, 2024. After completion, Pax Technology Australia PTY Ltd., the target company, will be indirectly owned 100% by the company and will be accounted for as a subsidiary of the company.
The target company mainly provides electronic payment terminals in Australia and New Zealand, and has shown strong growth in the past few years. The Board of Directors believes that the acquisition will strengthen the group's global sales network and serve as a cornerstone for the group's operations in Australia and New Zealand, acting as a catalyst for further growth.
The expected synergies brought by the target company and the commercial reasons for the acquisition include: 1. Strengthening the group's global sales network, especially in Australia and New Zealand; 2. Establishing a direct sales channel for target customers in Australia and New Zealand, reducing costs, and achieving better resource planning and efficiency; 3. Rapid response to possible demand fluctuations, expected changes, and other dynamic changes in the market; and 4. Enhancing brand awareness through the target company's presence in the local area and establishing stronger and closer relationships with local end customers and other stakeholders.
