Westpac in talks to buy Tyro

Westpac is in the early stages of acquisition talks with payments provider, Tyro.

In a statement to the ASX, Westpac said “it is in preliminary discussions” with the Australian company “to acquire 100 percent of the company’s issued share capital”.

However, the bank added “there is no certainty that any transaction will result.”

Tyro’s current share price is $1.59 and the company has a market capitalisation of just over $800 million.

Westpac said a potential purchase of Tyro would “strengthen [its] small business proposition, enabling it to better support customers and grow merchant acquiring, particularly in the hospitality and healthcare sectors.”

Westpac's confirmation of talks coincided with a response by Tyro to media speculation about a potential sale.

In Tyro’s ASX statement, it confirmed it “received approaches from several parties expressing interest in a potential change of control transaction”, including Westpac.

Tyro did not name any other interested parties.

It added that “none of these approaches are sufficiently definite or advanced to warrant further disclosure at this time.”

“Tyro is engaging in preliminary discussions with selected parties in the context of maximising value for all shareholders," the company said.

“[Tyro] notes that these approaches are non-binding and highly conditional in nature, and there is no certainty that a binding offer or a transaction of any kind will eventuate.”

The company said it would ‘keep the market informed of any material developments” with shareholders not required to do anything at this time.