Tyro Payments' Takeover Speculation Keeps Falling Short of a Deal

Multiple takeover approaches haven't cleared board pricing hurdles, leaving fund managers divided between frustration at missed opportunities and genuine independent upside.

31 Aug 2026 · 3 min read

Tyro Payments, a leading merchant acquiring and payment services provider with significant share in health, hospitality and retail, endured repeated unfollowed-through takeover approaches and card surcharging cessation uncertainty, before a friendly RBA payments review and impressive cost control left fund managers split between a board that should have sold years ago and genuine independent upside.

Takeover speculation without follow-through

DMX Asset Management said its relatively recent, small position in Tyro rose strongly in August on the back of takeover speculation, but had been drifting back in September as speculation hasn't been met with follow-through, with the company announcing multiple approaches, though pricing hasn't been acceptable to the board. Jencay Capital described Tyro as a leading provider of merchant acquiring and payment services in Australia with significant share in the health, hospitality and retail segments, with FY25 in line with expectations and guidance, and the new year starting positively with transaction volumes lifting on improved consumer spending.

Tyro Payments is a relatively recent and small position for us which rose strongly in August on the back of takeover speculation, but has been drifting back in September as speculation hasn't been met with follow-through. The company has announced multiple approaches, but pricing hasn't been acceptable to the Board.

— DMX Asset Management, Monthly Report, September 2025

A friendly RBA review and impressive cost control

Forager Funds said Tyro delivered a better result than the market expected, with the RBA review into the payment sector coming out pretty friendly to Tyro, noting the company is quite agnostic as to whether businesses surcharge or not, providing payments infrastructure for small and medium businesses in Australia. DMX Asset Management said Tyro drifted 8 percent for no particular reason, continuing to see meaningful upside potential with Tyro either as an independent operator, or potentially to a strategic acquirer who could convert more of its significant revenue base to the bottom line.

It was actually a better result than the market expected. The RBA review into the payment sector has come out and I'd say it's pretty friendly to Tyro. Tyro is quite agnostic as to whether businesses are surcharging or not. They provide payments infrastructure for small and medium businesses in Australia.

— Forager Funds, Presentation, April 2026

A stark hold-versus-sell divide

Forager Funds, a buy, said Tyro has had an interesting listed history, a very rapidly growing business when it first floated, with the fund getting involved after growth had slowed, but seeing quite impressive control at the operating cost line. Wilson Asset Management, a sell, said it was jaded on Tyro, having been big shareholders in the past, believing the board should have sold the business years ago when it had the opportunity, worried about competition, though acknowledging the stock is cheap and it wouldn't be surprised to wake up to a takeover one day. DMX Asset Management said Tyro recovered 21 percent as market speculation again turned to potential corporate activity, having previously been under pressure with uncertainties surrounding the cessation of card surcharging, believing Tyro is well placed for the changing landscape with an opportunity to win market share as merchants reassess options.

We've been big shareholders in this in the past and our view is the board should have sold the business years ago when they had the opportunity. Competition is what scares me on this one. The stock is cheap. It wouldn't surprise me if I woke up tomorrow and there was a takeover for it one day.

— Wilson Asset Management, Article, May 2026

A pivotal year ahead

Forager Funds said Tyro showed progress in its 2026 results but not enough yet to dispel the bear case, with the coming financial year seen as pivotal.

What fund managers say they are watching next is whether a takeover finally materialises at acceptable pricing given multiple prior unfollowed-through approaches, delivery of the impressive operating cost control into bottom-line growth, whether Tyro wins market share as merchants reassess options following card surcharging cessation, and whether the coming pivotal financial year dispels the bear case.