Certegy to acquire Game Financial Corporation
20 February 2004 | 787 views | 0
Certegy Inc. (NYSE:CEY), a leading global payment services provider, today announced that it has entered into an agreement to acquire Game Financial Corporation for approximately $43 million in cash. Founded in 1990, Game Financial provides debit and credit card cash advances, ATM access and check cashing services in approximately 60 gaming establishments nationwide. Game Financial is a subsidiary of Travelers Express Company, which is owned by Viad Corp (NYSE:VVI). The closing of the transaction, which is subject to customary closing conditions, is expected to occur in early March 2004.
"We are very pleased to announce this transaction, which positions Certegy as a leading provider of comprehensive cash access services to the gaming industry. The acquisition of Game Financial is consistent with our strategy to generate new growth opportunities through the development of new product offerings, entry into new vertical markets and through targeted acquisitions," stated Lee Kennedy, chairman, president and chief executive officer of Certegy Inc.
Certegy currently provides payroll check cashing services in over 6,000 locations throughout the United States. "The acquisition of Game Financial will significantly broaden our cash access services beyond payroll check cashing, and will increase our presence in the rapidly growing gaming industry," stated Jeff Carbiener, senior vice president and group executive for Certegy Check Services. "There is a high demand for single source cash access solutions. Providing these services is a natural extension of our check cashing product line," he added.
"Game Financial has been a good investment for Travelers Express but no longer fits within our core business," said Phil Milne, president and chief executive officer for Travelers Express Company, Inc. "We are pleased with the sale to Certegy and confident that Game Financial will continue to be successful under this new management."
Certegy expects this acquisition to add approximately $50 million in annualized revenue. The Company anticipates the transaction to be neutral to its diluted earnings per share in 2004, considering integration costs and lower share repurchases than previously assumed. In 2005, the acquisition is expected to add approximately $0.03 to diluted earnings per share.