Tyro Payments (ASX: TYR) – Australia merchant provider

ABOUT COMPANY

Tyro Payments (TYR) (https://www.tyro.com/) provides Australian businesses with simple, flexible, and reliable payment solutions as a merchant acquirer, along with complementary business banking products. The company supports over 66,000 customers which represents around 6% of the card payment market.

In May 2021, the company acquired Medipass, an innovative cardless digital healthcare claiming and payment platform, for $22.5m. At the time, Medipass had an ARR of $1.8m from some 4,400 healthcare providers.

In September 2022, the private equity, Potentia Capital, offered an indicative takeover offer of $1.27 per share (subsequently revised to $1.6). As of 11 December 2022, it holds a 16.08% interest. Additionally, it received support from the largest shareholder, Grok who holds another 12.5% interest.

CAPITAL STRUCTURE

In September 2022, former Medipass CEO, Jonathan (Jon) Davey, was appointed as the group CEO.

BUSINESS

Below is the company’s past five-year performance

In FY24, the group’s banking gross profit grew by 29% YoY to $12.6m with 7,643 (up 27% YoY) active bank accounts. The loan origination was down 9%. The active bank accounts grew to 8,987 in Dec 24.

The company’s market penetration has stalled overall, the future margin growth will come from operation efficiency.