Paxys unit acquires PBI Solutions

MANILA, Philippines - Smartsalary Pty Ltd, the Australian-based subsidiary of publicly-listed Paxys Inc., has completed the purchase of PBI Solutions Pty Ltd. in a deal valued at A$6.1 million ($8.5 million).

In a disclosure to the Philippine Stock Exchange, Paxys said the acquisition of 100 percent of PBI Solutions would be funded by internally-generated cash.

The acquisition price was determined based on PBI’s current and projected EBITDA and existing contracts.

PBI is engaged in the business of issuing credit card products to employees of public hospitals and public benevolent institutions in Australia who are granted fringe benefits.

“The acquisition of PBI will complement Smartsalary’s current business of salary packaging by extending its product suite into the PBI customer base,” Paxys said.

Incorporated on Jan. 29, 2009, PBI offers three types of cards – the Employee Bnenefit Cards, the Meal & Entertainment Card and the soon-to-be launched Holiday Accommodation & Venue Hire Card. It currently has 29,000 subscribers.

Paxys said the acquisition of PBI will increase its total consolidated assets by 5.5 percent and its annualized revenues by 1.7 percent.

Paxys, through Smartsalary, will continue to strengthen its salary packaging business in Australia and further expand its customer base.

Apart from outsourced salary packaging administration services, Smartsalary is also engaged in car lease finance broking and other related employee benefits.

Paxys is a holding company that focuses on investments in the business process outsourcing industry within the Asia Pacific region.