CALGARY, AB--(Marketwired - October 03, 2016) - DirectCash Payments Inc. ("DCPayments" or the "Company") is pleased to announce it has entered into an agreement with First Data Corporation ("First Data") (NYSE: FDC) to purchase all of First Data's Australian retail ATM and managed services ATM portfolio, comprising approximately 3,500 ATMs in the Australian market. The total purchase price for the acquired assets of First Data is approximately A$55 million, including working capital and normal course purchase price adjustments (the "Acquisition").
First Data is a global leader in commerce-enabling technology. First Data's ATM assets add a highly strategic complementary capability and diversification to the Company's existing Australian business. The Board of Directors of DCPayments unanimously approved the Acquisition, which closed September 30, 2016. The acquisition was funded with bridge loan financing by Bank of Montreal.
DCPayments believes the integration of First Data's Australian ATM managed services portfolio will position the Company to continue its diversification in this market as an independent provider of financial transaction processing.
Jeffrey J. Smith, DCPayments' President and Chief Executive Officer said, "we are very excited about this acquisition as it bolsters our core ATM business in Australia and gives us a significant presence in the highly strategic financial institution managed services segment. First Data is a premiere ATM operator in Australia, with quality contracts in place with its customers. We are excited to have the opportunity to add the First Data Australian ATM business to our operations, and continue to diversify our product and service offering internationally as we believe that the financial institution managed services business will further position the Company within the Australian payments space as a leading provider."
Addition of a highly strategic complementary business
- First Data's managed services business enhances DCPayments' core ATM and payments processing business and diversifies DCPayments business mix in the Australian market
- First Data has long-standing contractual relationships with a significant number of Australian financial institution customers
Attractive opportunity to grow DCPayments' core ATM business in Australia
- Adds approximately 2,600 retail non-bank ATMs and ~930 financial institution ATMs
- Processes over 56 million transactions annually
The Company is one of the largest branded ATM providers in Canada and Australia, and the third largest branded ATM provider in the United Kingdom. DCPayments is one of the leading providers of credit union and other financial institution processing and outsourcing services, branded non-financial institution debit terminals and prepaid card products in Canada. DCPayments also offers ATM services in Mexico and New Zealand.
Additional information about DCPayments, including DCPayments' Annual Information Form and other public filings is available on SEDAR (www.sedar.com) and on the DCPayments' website (www.directcash.net).
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling technology and solutions, serving approximately six million business locations and 4,000 financial institutions in 118 countries around the world. The company's 24,000 owner-associates are dedicated to helping companies, from start-ups to the world's largest corporations, conduct commerce every day by securing and processing more than 2,500 transactions per second and $1.9 trillion per year.