CALGARY, ALBERTA--(Marketwire - May 25, 2012) - DirectCash Payments Inc. (TSX:DCI) ("DirectCash" or the "Corporation") today announced that DirectCash has entered into an agreement with Triton Systems of Delaware, LLC ("Triton") to acquire the automated teller machine business of InfoCash Holdings Limited ("InfoCash"), a wholly owned subsidiary based in the United Kingdom. The purchase price was GBP 11.8 million ($19.1 million CAN) including working capital such as inventory, prepaid expenses and accounts receivable. The acquisition is subject to customary purchase adjustments and holdbacks and was initially funded from DirectCash's acquisition credit facility.
A total of approximately 4,700 ATM sites and related contracts were acquired by DirectCash in the United Kingdom. The acquisition of these ATM contracts brings the total number of DirectCash's active ATM locations to approximately 12,300. With the transaction DirectCash has become a leading global ATM provider with ATM operations in Canada, the United Kingdom, and Mexico. The acquisition of InfoCash creates a leading presence for DirectCash in the United Kingdom and presents an opportunity for further expansion into the European market. InfoCash has a strong and capable management team that will continue to manage and grow the business.
InfoCash was founded in 1999 and has been successful in creating a very profitable and well managed portfolio of ATMs in the United Kingdom. Since inception InfoCash has created a strong profitable network of ATMs through its commitment to service and support of its customers and brand. InfoCash is one of the leading ATM operators in the United Kingdom. As a result of this acquisition, DirectCash will obtain a dominant market position in the United Kingdom, where DirectCash has existing operations in the prepaid cash card line of business.
The acquisition is expected to be accretive to DirectCash's funds from operations per share.
For additional transaction details, as they relate to the InfoCash acquisition please refer to the transaction presentation available on the homepage of DirectCash's website (www.directcash.net).
Customers Limited Update:
DirectCash announced on April 27, 2012 that it delivered committed financing pursuant to a previously announced agreement to acquire Customers Limited (ASX:CUS) ("Customers") and can advise that the transaction is proceeding and the scheme booklet has been mailed to Customers shareholders and the vote is expected to occur on June 18th 2012 as planned.
With the addition of the InfoCash ATM business today and the Customers acquisition, which is expected to close in early July, DirectCash will have approximately 18,600 active ATM locations worldwide.
For additional transaction details, next steps as they related to the Customers acquisition please refer to the DirectCash press release dated April 1, 2012 and the full text of the Scheme Implementation Deed can be found under the DirectCash profile on SEDAR at www.sedar.com.
"We are very excited about the acquisition of InfoCash as it gives us significant ATM market presence in the United Kingdom and the opportunity to continue to build our presence internationally. InfoCash is an exceptional ATM operator in the United Kingdom with quality ATM merchant contracts in place and a strong management team that will continue to drive growth in the future." said Jeffrey Smith, DirectCash's President and Chief Executive Officer.
DirectCash is the largest branded ATM provider in Canada, operating under the trade name DirectCash ATM, and is one of the leading providers of branded non-financial institution debit terminals and prepaid card products.
Additional information about DirectCash, including DirectCash's Annual Information Form and other public filings is available on SEDAR (www.sedar.com) and on the DirectCash's website (www.directcash.net).
The officer responsible for issuance of this press release and who may be contacted for further information is: Jeffrey J. Smith.