Australia's Latitude offers $242 million for Humm's buy now, pay later business
(Reuters) - Australian digital payments and lending firm Latitude Group Holdings Ltd on Thursday offered to buy Humm Group Ltd's consumer unit, including its buy now, pay later business, for A$335 million ($241.8 million).
The proposal comes weeks after Humm said it was approached for a takeover, and follows bellwether Afterpay's $29 billion buyout by Block Inc, which analysts have said could spark a flurry of deal-making as more household names look to enter the fast-growing sector.
Latitude said it will pay A$35 million in cash and 150 million shares for the unit as it looks to accelerate its BNPL strategy, and expects to have more than five million customers and over 70,000 merchants after the deal.
It currently expects annualised combined synergies and cash earnings from the acquisition to exceed A$100 million pre-tax in 2023 and anticipates the deal to be double digit accretive to its earnings.
If the deal materializes, Humm Group Chief Executive Rebecca James will lead the combined group's BNPL business and Latitude will add two Humm directors to its board, it said.
The proposed acquisition is still subject to due diligence from both parties as well as regulatory and shareholder approvals and the companies said they aim to close the deal before June 30.
($1 = 1.3854 Australian dollars)
(Reporting by Shashwat Awasthi; Editing by Shailesh Kuber)
