DirectCash Payments to acquire Australian ATM business of Ezeatm for A$14.1m

Source: DirectCash Payments

DirectCash Payments Inc. (DCI.TO) (the "Company" or "DC Payments") is pleased to announce that it has entered into an agreement (the "Agreement") to acquire the ATM business of Ezeatm Limited (EZA.AX) ("Eze") in Australia.

DC Payments has agreed to acquire all of the outstanding shares of a subsidiary of Eze together with all the ATM business assets for a total consideration of approximately A$14.1 million, subject to working capital adjustments.

The transaction will bolster the Company's existing leading position in Australia.

The acquisition is subject to approval of Eze's shareholders and certain closing conditions contained within the Agreement. The Eze Board of Directors have unanimously agreed to recommend that Eze shareholders vote in favor of the transaction, subject to there being no superior proposal and Eze obtaining an Independent Expert's Report concluding that the transaction is fair and reasonable to Eze shareholders.

The transaction is expected to close in the fourth quarter of calendar year 2014 and is expected to be accretive to DC Payments' funds from operations per share in the first fiscal year following the transaction. DC Payments expects to fund the transaction through its revolving credit facility.

The Transaction
On closing, the Company will acquire approximately 1,325 ATM sites and related contracts increasing the total number of DC Payments ATM active terminals in Australasia to approximately 7,520. This represents a 21% increase in active ATM terminals in Australasia from Q2 2014. DC Payments has the largest independent network of branded ATMs in the Australian market. The Eze acquisition will significantly strengthen this position.

Eze's publicly available financial information reported A$2.7 million in EBITDA for the year ended June 30, 2014.

Management Commentary
Jeffrey J. Smith, DC Payments' President and Chief Executive Officer said, "We are very excited about this strategic tuck-in acquisition for our Australian business, as it offers significant economies of scale, cost savings and bolsters our existing position in the Australian marketplace as the largest independent network of branded ATMs. Eze has a large ATM portfolio in Auso in Australia and we are excited to have the opportunity to add the Eze business to our operations, and continue to build our presence internationally."

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