Findi (FND) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition provides immediate access to a white-label ATM license and a robust payment switch in India, eliminating the need for in-house development.

• Expands reach into rural areas, enhancing coverage and capability, and aligns with the strategy to serve underbanked regions.

• Establishes the second-largest white-label ATM business in India, with significant potential for further ATM rollouts.

• Integrates with an existing merchant base to create a financial services marketplace at merchant locations.

Financial terms and conditions

• Acquisition expected to generate AUD 25-30 million in revenue in 2028-2030, with EBITDA of AUD 5-7 million.

• Tax depreciation benefit of AUD 32.9 million enhances valuation ahead of IPO.

• Forecasts for FY 2026: AUD 55 million revenue, AUD 15 million EBITDA, and AUD 10 million NPAT from white-label operations.

• Franchise fees projected at AUD 58.3 million, with net cash generation of AUD 48 million, exceeding acquisition cost.

Synergies and expected cost savings

• Eliminates reliance on third-party acquirers, improving FindiPay margins.

• Franchise model shifts cost structure from fixed to variable, reducing capital intensity and enabling scalability.

• Integration of ATMs with FindiPay locations leverages existing footfall and merchant relationships.