Wellington, Aug 19 NZPA - SmartPay Ltd is paying $6 million for the payments division of collapsed ProvencoCadmus.

The company announced the purchase yesterday but did not disclose the price.

It revealed the figure today in a statement to NZX, which said the purchase "was a very good deal".

The acquisition quadruples the size of SmartPay and makes it the largest Eftpos terminal provider in New Zealand.

The deal will be completed with an initial payment of $3m in cash with the balance paid in cash in 90 days.

Managing director Ian Bailey said funding of the initial payment had been organised and arrangements for funding of the remaining payment was well under way.

The agreement with the receivers of ProvencoCadmus includes the New Zealand and Australian payments operations, transactional business and all intellectual property relating to payments.

In early August, the directors of ProvencoCadmus asked ANZ National Bank to appoint receivers because of insufficient funds to meet working capital requirements.

Michael Stiassny and Brendon Gibson, of KordaMentha, were appointed and said they would seek to sell the company's businesses as going concerns. ProvencoCadmus employed 180 people and had debt of $45m.