Manchester-based digital payments company, ThinkSmart, has sold its recently launched ClearPay Finance business for approximately £10.5 million.
Formally launched in March 2018, ClearPay enables retailers to offer customers the option of spreading the cost of purchases up to £450 over three interest-free monthly payments. ThinkSmart, which operates from Old Trafford and also has an office in Australia, has sold 90% of ClearPay’s share capital to the Australian company AfterPay Touch Group.
The acquisition involves the exchange of 1 million shares in AfterPay, currently valued at around AUD$18.5 million (£10.5 million). ThinkSmart will retain the remaining 10% of ClearPay’s shareholding, which will be allocated to ClearPay employees through an employee share ownership plan.
Executive chairman Ned Montarello expressed satisfaction with the transaction, stating, ‘The board is pleased to crystallise a significant return on investment for shareholders with the sale of 90% of ClearPay, while still retaining an ongoing investment in what, in our view, is the leading player in this sector globally, having recently successfully entered the US market.’
Montarello further highlighted AfterPay’s strong market position and growth potential, adding, ‘AfterPay’s product, ongoing success, and go-to-market strategy is compelling, and we are delighted to now be a part of this story. In a market three times the size of Australia, the acquisition of ClearPay will assist AfterPay in becoming the dominant player in the UK market with the potential for significant growth over the next five years.’
As part of the acquisition, AfterPay will inherit ClearPay’s corporate identity, contracts with service providers, and key employees with knowledge of the UK market. Retailers and customers currently utilising ClearPay’s system will transition to AfterPay’s global platform, which is scheduled to launch in the UK within the next six months.
ThinkSmart will continue to operate its core credit and leasing business and will invest in its digital payments solution, SmartCheck.
The deal marks a significant step for ThinkSmart, securing a substantial return on investment while enabling AfterPay to expand its presence in the UK market.
