Eftpos company ProvencoCadmus announced yesterday it has sold its New Zealand-based mobile computing and point of sale integration business.
Members of the senior management team have bought the division after the company last month reported a loss of $36.3 million.
The downturn in the retail sector, reducing sales
of Eftpos machines, meant the company wanted to raise new capital, but was advised against tapping into the equity market.
Chairman Rick Christie said the company was also in the final due diligence phase of an expected sale of its Eftpos finance book.
Prior to the company's merger in May 2008, the Cadmus group built up a finance business based on leasing Eftpos terminals into the New Zealand and Australian markets. Provenco had used third party providers to supply this service.
Leasing services could be provided through a professional finance provider and the company could focus on the sale of Eftpos equipment, he said.
The process was to be completed in late September.
Christie said the company was also thinking about selling its Vantex distribution division. ProvencoCadmus shares closed unchanged at 18c yesterday.
- NZPA
