DirectCash acquires ATM and debit terminal assets of Selectech

Source: DirectCash Income Fund

DirectCash Income Fund ("DirectCash", or the "Fund") announced today the purchase of ATM and debit terminal assets for cash consideration of approximately $3.2 million, subject to customary performance holdbacks and normal course purchase adjustments.

DirectCash utilized its acquisition credit facility to fund the acquisition.

DirectCash indirectly acquired the ATM and debit terminal assets of Selectech Inc. ("Selectech"), operating out of Winnipeg, Manitoba. Selectech is an ATM and debit terminal distributor of DirectCash which operated 399 ATMs and 15 debit terminals under the DirectCash banner. DirectCash took over the leased premises of Selectech and will operate the Winnipeg location as a DirectCash regional service centre. The transaction closed on February 23, 2007.

"This acquisition is a continuance of our strategy of pursuing consolidation opportunities through the acquisition of high quality ATM and debit terminal assets" said Jeffrey Smith, DirectCash's President and CEO. "Although this particular acquisition does not add additional sites to the DirectCash network, it allows us greater operational control and flexibility, as well as increasing our per transaction profitability for each ATM and debit terminal contract acquired. Our costs will be reduced through the elimination of residual commissions to Selectech and the addition of owned ATMs will increase surcharge revenue."

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