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US investor Sixth Street plans to acquire digital payments service Pushpay – World news

US investor Sixth Street plans to acquire digital payments service Pushpay – World news
Pushpay’s cornerstone investor Sixth Street says it would like to acquire the digital payments service.

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Pushpay’s cornerstone investor Sixth Street says it would like to acquire the digital payments service.

  • Several potential bidders are circling Pushpay
  • Substantial shareholder Sixth Street said it’s interested in acquiring the company
  • Pushpay shares jumped 13% after a trading halt was lifted

United States investment firm Sixth Street Partners plans to acquire digital donation service Pushpay and other potential bidders are circling.

Sixth Street became a cornerstone investor in Pushpay last year after buying shares from the wealthy Huljich family, who were early investors in the company.

In a notice to the NZX on Tuesday, Sixth Street said it had increased its interest in Pushpay to 20.3% from 17.8% after inking an agreement with other investors, including fellow Pushpay shareholder BGH Capital, to work together on the potential acquisition of all or a substantial part of the shares in Pushpay.

Pushpay announced last month that it had appointed Goldman Sachs to advise it on unsolicited approaches from third parties looking to acquire the company. Since then, it has received additional interest from multiple parties, the company said in a statement to the NZX on Tuesday.

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Pushpay has not entered into an agreement with any party, including its existing shareholders Sixth Street or BGH Capital, to implement a transaction, it said.

“Pushpay is continuing with a process that is already underway and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole,” the company said. “There is no certainty that this process will result in any transaction.”

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The digital payments firm was founded by Christians Chris Heaslip and Eliot Crowther, who felt awkward when they did not have any cash to make a donation in church one day. It turned the corner in 2019, when it posted its first profit, although it continues to reinvest its cash for growth rather than pay dividends.

In recent times, the company has been investing in related services that it can provide to churches, such as a streaming platform, to accelerate its growth.

Shares in Pushpay jumped 13% to $1.40 after a trading halt was lifted on the NZX mid-afternoon on Tuesday, making it the biggest gainer on the market. The stock is down 18% over the past year.

Sixth Street hasn’t launched a formal takeover offer for Pushpay, with details of its plans noted in a substantial shareholder notice to the NZX.

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