Cambria to get US $2 million investment for Payserv

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payserv-logoA report in the Sunday Mail newspaper says local payments switching & software company, Payserv, will be getting a US $2 million convertible debt investment from a South African based alternative asset management and advisory firm, Nisela Capital. The debt matures after 3 years with a coupon rate of 15%. Nisela has the option to convert all or part of the debt into equity Payserv equity of up to 21.3%.

Payserv is currently owned 100% by Cambria Africa, which has other diversified interests in Zimbabwe. Payserv itself as a group has Paynet, Autopay, Loanserv (also known as Tradanet) and Softserv under its wings. In its first half interim report for 2013, Payserv managed earnings (EBITDA) of $451,000. Cambria itself made a loss of $2.5 million.

According to a recent Cambria release on the development, Payserv will only use half of the proceeds of the new financing with the other half going to other Cambria operations. In the past year, Payserv entered the Zambian market, and the new funding may be an effort to capitalise the Zambian operations.

In addition to the new money, the deal is expected to bring fresh expertise to Payserv.