Atlanta-based electronic transactions company Global Payments has reached an agreement to acquire 52.6% of the outstanding shares of Czech payments processing firm Muzo from Komercni Banka for $34.7 million in cash.
Under the agreement, Komercni Banka will extend its payment services contracts with Muzo for a further three years.
Muzo claims to be the largest indirect payment processor in the Czech Republic with a 50% market share. For the year ending 31 December 2003, the firm expects total revenue of approximately $27 million.
The company has approximately 240 employees and delivers credit and debit card transaction processing services, sales, installation and servicing of ATM and POS terminals, as well as card issuing services.
Paul Garcia, chairman, president and CEO of Global Payments, says: "We have been focused on entering the European market with a leading-edge technology platform and a first class management team. I believe that Muzo provides both, plus an attractive customer base."
The transaction is expected to be completed during Q1 2004.