EFunds acquires Evergreen Teller Services; posts lower Q2 earnings
26 July 2002 | 2459 views | 0
EFunds Corporation has acquired Evergreen Teller Services, a California-based independent provider of ATM services, for $9.4 million.
Evergreen manages an ATM network and provides sales and service for more than 1600 ATMs, mostly located in California and the northwest United States.
The acquisition will expand eFunds' network of ATMs to 14,300 across all 50 states and Canada. The company plans to consolidate the Evergreen ATM network into its Access Cash business over the coming months and says it will continue to look for acquisition candidates.
Gus Blanchard, chairman and CEO of eFunds, comments: "eFunds continues to believe there is untapped opportunity in ATM services and merchant processing among networks, financial institutions and retailers. We intend to expand the terminal network, and at the same time, improve the profitability of the machines already deployed."
News of the transaction comes as eFunds posts lower second-quarter earnings, hurt by a $10.4 million restructuring charge. After restructuring, the company earned $3.93 million, or 8 cents a share, for the quarter, compared with $7.74 million, or 16 cents a share, in the year-earlier period. Revenue remained static at $133 million.