Trade Me to buy credit card processor Paystation for undisclosed sum
By Paul McBeth
Sept. 15 (BusinessDesk) - Trade Me Group, New Zealand's biggest internet auction site, has bought Wellington-based online credit card payments firm Paystation for an undisclosed sum.
The acquisition is expected to be completed by the end of the month, and included two related firms, web developer Face and server hosting unit Netspace Services, Wellington-based Trade Me said in a statement. The purchase price was confidential, but not material, and will be funded through Trade Me's cash, which was $41.7 million as at June 30.
"It’s no secret that we want to make trading on Trade Me faster and easier," chief executive Jon Macdonald said. "We think the mix of Paystation’s payments nous and Trade Me’s trusted community of buyers and seller holds a lot of opportunity."
Last month, Trade Me warned earnings would remain subdued in the coming year as it reinvests into its business after posting slower profit growth in 2014.
Shares of Trade Me slipped 0.3 percent to $3.46, and have dropped 15 percent this year.