DirectCash purchases Moneta Systems' ATM portfolio
03 April 2006 | 1124 views | 0
Source: DirectCash Income Fund
DirectCash Income Fund (DirectCash, or the Fund) announced today the purchase of ATM assets from Edmonton, Alberta based Moneta Systems Inc., Moneta Management Inc., and Moneta Financial Services (Moneta) through DirectCash's subsidiary DirectCash ATM Processing Partnership.
The aggregate cash consideration paid was approximately $4.8 million, subject to customary performance holdbacks and normal course purchase adjustments, and was funded from DirectCash's acquisition and operating credit facilities. Acquired assets include 260 ATMs and long-term ATM processing and service contracts, inventory, and vault cash.
Moneta operates a network of 260 ATMs, all of which will be converted to the DirectCash ATM banner. "By acquiring the assets of Moneta, we have continued to execute our strategy of pursuing ATM consolidation opportunities through the acquisition of high quality ATM assets" said Jeffrey Smith, DirectCash's President and CEO. "These additions to our network are expected to be accretive to per unit distributable cash flow".
In conjunction with the acquisition of the Moneta assets and the overall growth in business levels, DirectCash has expanded its credit facilities to take advantage of its strong balance sheet and modest leverage, and to position itself for additional short-term acquisition opportunities should they arise. DirectCash increased the limit on its acquisition credit facility from $15.0 million to $30.0 million. DirectCash's demand operating facility has been increased from a limit of $11.0 million to $16.0 million and is utilized for the funding of ATM vault cash, commercial letters of credit and general business purposes. The terms and covenants for the credit facilities remain substantially unchanged.