Here is my take on it. I am open to get challenged, comments and opinions.
Cons:
- 0.64:1 share deal is not great
- Afterpay will need to raise fund to keep the business going and there are two ways to go about it; share dilution or negotiating a new credit line
- Afterpay can lose their credit line with NAB
- Reducing overhead, I am awlays conscious that changing the dynamic of a team can have significant impacts (culture eats strategy for breakfast)
- Touchcorp seems to serve Afterpay for now, meaning it is mainly about processing Afterpay transactions for now
Pros:
- The Afterpay brand
- The new company will be Australian, no more dealings with Bermuda
- Shareholders can enjoy the Afterpay momentum by signing with new merchants if it keeps going
- Afterpay has a deal with Tyro which is interresting
- The leaders remains the same for the Touhcorp team
- Cross selling
- Afterpay could use the Touchcorp revenue and cashbalance to keep financing their activities
- They mentionned the desire to keep developing the Touchcorp platform
- If Afterpay activities slows dows due to lack of funding, Touchcorp can still make money
May I ask someone to confirm this point please?
- The new company will be Australian, no more dealings with Bermuda
Here is my take on it. I am open to get challenged, comments and...
Add to My Watchlist
What is My Watchlist?