Cuscal shares soar as it announces $75m Indue buyout
Make us a preferred source
Make us a preferred source on Google
More news: Cuscal shares rocketed today after the payments services provider announced the $75 million acquisition of Queensland-based rival Indue.
Shares were up 20.2% to $3.55 at 1:10pm AEST, having climbed 42% over the last 12 months.
Cuscal full-year profit drops 9% to $29m, acquires Indue for $75m
The news: Cuscal’s net profit after tax for financial year 2025 has come in at $28.7 million, a 9% decrease on the preceding year, in part due to costs incurred from listing on the ASX in November 2024.
The company also announced it has agreed to acquire payments infrastructure provider Indue for $75 million in cash through a binding conditional share sale and purchase agreement.
The numbers: The market consensus estimate for net profit after tax (NPAT) was expected to be $38.4 million, according to Visible Alpha. Cuscal said that the profit figure was affected by ‘offer costs’ and other costs from listing on the ASX, totalling $9.7 million after tax.
On a pro forma basis, NPAT was up 17% to $38.4 million and pro forma adjusted EBITDA was up 13% to $65.7 million. Transaction volumes also grew 8%.
Cuscal declared a final dividend of 5.5 cents per share, ahead of the 5 cents per share final dividend declared in the previous corresponding period.
The context: The company noted that Cuscal’s acquisition of Indue is “anticipated to generate $15 million to $20 million (post tax) in annual run rate cost synergies”, expected to be fully realised by the end of FY29.
Cuscal expects the deal will drive earnings per share accretion of over 25% and a return on invested capital of over 20%.
Non-recurring costs from the integration is expected to be $25 million and $30 million (post tax), and will be incurred over a three-year period, although it will be weighted towards the first two years after completion.
What they said: “We look forward to welcoming the Indue team and clients to Cuscal and believe that our experience in seamlessly integrating acquisition and large-scale client migrations, along with the steps we have taken to ensure our success, including establishing an Integration Advisory Committee, will help us effectively combine the two businesses,” Cuscal managing director Craig Kennedy said.
The source: ASX
