Smartpay Shares Surge Over 22% as Tyro Exits Takeover Race | ASX200 M&A News

May 05, 2025 12:52 PM AEST | By Team Kalkine Media

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Smartpay Shares Surge Over 22% as Tyro Exits Takeover Race | ASX200 M&A News — Image source: shutterstock

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Highlights

Smartpay enters exclusive talks with a new suitor

Tyro exits acquisition race after higher bid surfaces

Smartpay shares jump over 22% on the development

Shares of payment solutions company Smartpay (ASX:SMP) soared more than 22% after it was revealed that the firm has entered into exclusive discussions with a new international bidder, leading Tyro Payments (ASX:TYR) to officially step away from its acquisition attempt.

Smartpay confirmed it had secured an exclusive arrangement with an undisclosed “international strategic” for a proposed buyout at NZ$1.20 (AU$1.12) per share. This new offer significantly surpasses Tyro’s previous bid of NZ$1.00 (AU$0.90) per share, which had valued Smartpay at approximately AU$218 million.

The market responded swiftly to the news, with Smartpay’s share price jumping to AU$0.93 on the ASX, a gain of over 22% during the trading session. In contrast, Tyro shares remained steady at AU$0.775, reflecting the market’s neutral stance on the company’s withdrawal from the bidding process.

Smartpay, which provides EFTPOS terminals and payment solutions across Australia and New Zealand, has been a sought-after acquisition target due to its growing customer base and footprint in the digital payments sector. The company previously disclosed that it had entered a competitive bidding environment, attracting interest from multiple parties including Tyro.

Tyro stated it had submitted a formal proposal earlier in the process and was actively involved in due diligence. However, the emergence of a superior bid led to Smartpay's decision to enter an exclusive negotiation period with the unnamed strategic suitor, effectively eliminating Tyro from the acquisition race.

This development comes amid increasing consolidation activity in the fintech and payments space, a trend that investors on the ASX200 are closely monitoring. Mergers and acquisitions among mid-cap players like Smartpay and Tyro are seen as potential catalysts for reshaping the digital finance landscape in Australia and New Zealand.

In light of the competitive bid and growing market interest, Smartpay's performance could attract further attention among investors interested in ASX dividend stocks and emerging tech-enabled businesses that demonstrate strong growth potential and strategic value.

As Smartpay’s board evaluates its options in partnership with the new bidder, market watchers will be paying close attention to any updates that could impact valuation and strategic direction moving forward.

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