I did some quick research into this. Found this:
https://paymentweek.com/2018-6-7-thinksmart-announces-launch-clearpay-aurum-group-limited/
So the business is only a couple of months old so their existing business is not material.
APT has made a play, IMO, for a couple of reasons:
1. Take our a potential pest/competitor for when they decide to move.
2. Regulatory compliance. We all know UK is heavy on admin etc. Expect Clearpay has appropriate licenses for a quick start.
3. Recruit locally and quickly. Retain key existing staff on local packages (lower cost than a relocation of expat), who have commenced relationships etc.
The terms are quite good. 1mx shares ($18m) for 90% of the business. The additional 10% can be purchased by APT at already agreed valuations. There is also a component of Key Management having equity via ThinkSmarts portion.
IMO, it is well structured. Yes, it is expensive today for a business that has just started, but they have infrastructure which we will take out, we will bring in the APT platform and the plan is that in 6 months the business operations will be aligned to rest of APT business (eg. Clearpay is 3x payments).
This is fantastic. Can't wait to see the progress.
