Spenda Ltd (ASX:SPX) has executed a binding share sale agreement to acquire software development company Limepay Pty Ltd in an all-scrip deal worth up to $8 million, with the acquisition set to be completed next month.
Limepay is a B2B SaaS company providing embedded finance services to Australian businesses and comes with a team of banking software professionals that will significantly expand Spenda’s product development resources and capability.
Limepay generated $2.8 million in revenue and a gross profit of $1.4 million in the 2024 financial year, with a strong pipeline of new customer acquisitions.
Under the key terms of the agreement, the company has agreed to acquire all of the issued shares in Limepay. The consideration for the acquisition will be 100% scrip, split across four tranches, with the company agreeing to issue up to a total of 508,272,334 fully paid ordinary shares.
High value acquisition
Previously, Spenda managing director Adrian Floate commented on the acquisition, saying, “This is a high-value acquisition for Spenda that brings product capability, exceptional people, great customers and many opportunities to work together to drive revenue growth.
“The combined entity will have an expanded product suite that will enhance its competitive positioning in market and enable access to new customers and market verticals.
“From an operational perspective, the addition of a high-quality team of banking software engineers will accelerate our current project pipeline and improve our operational efficiency.
“We have complementary product roadmaps, and the ability to scale payment flows across the combined entity which we expect will increase our wallet share per customer.”
Additionally, Limepay founder and director Tim Dwyer said, “We are extremely excited about the opportunity to create a leader in the embedded finance space by integrating with Spenda and its management team led by Adrian.
“I believe it will be a great cultural fit for both our organisations and we’re excited to be part of Spenda’s next chapter. I believe the transaction will position us to execute significant business opportunities and create a leading payments company for enterprise customers.”