Internal Rate of Return (IRR)
Our investment in SecurePay
SecurePay provides a broad, complementary range of electronic payment and e-commerce solutions that include online payment gateway software, volume billing, and payment software. The company’s core technology and operating platform is applicable to many different markets, and combines the latest in internet, telephony and banking network technologies.
Given strong industry tailwinds and high level of engagement from banks, we had long been interested in the payments space. With its solid platform and links to all major banks, we thought that SecurePay was ripe for expansion. The early-stage investment risk associated with the business was also counterbalanced by its existing strong cash flow from its telephone calls charge business.
Our capital enabled our investment in SecurePay to commercialise its payments technology. We also assisted with further acquisitions of organisations and technology platforms that complemented the core range of services to consolidate its position as a market leader in the Australian payments services sector. The company was also able to leverage our banking relationships to access funding which were previously unable to them.
SecurePay was sold to Australia Post in December 2010. This was a highly strategic purchase for Australia Post, which allowed them to expand their online services. The investment returned 6.2x money multiple, and 20.4% IRR. This successful result was achieved via organic growth, and through the development of innovative proprietary systems, as well as through the acquisition of seven competing and complementary businesses which resulted in a much larger business at exit.