Company Name: Star Payment Systems
Announcement Date: 06/12/2016
Announcement Category: Merger/acquisition
Announcement Content:
Financial technology and ATM machine company, StarGroup (ASX: STL) has executed the asset sale agreement for the acquisition of the Indue Automatic Teller Machine switching, settlement, processing, telecommunications and reseller business.
While a Memorandum of Understanding (MoU) in relation to the acquisition was signed in September, final terms have only just been announced. These appear extremely favourable from a number of perspectives.
Firstly, the acquisition is being fully funded by debt which implies zero earnings per share dilution. Also, the acquisition multiple appears attractive at less than four relative to projected annualised EBITDA of $1.7 million.
However, potential investors should note that STL is still an early stage play and earnings projections may not be met and as such should not provide the basis for an investment decision. Those considering STL should seek independent financial advice.
Announcement URL: http://finfeed.com/technology/stl/stargroup-adds-1-7-million-annually-without-eps-dilution/20161202/
About Star Payment Systems:
Financial technology company Stargroup Limited is the only ASX listed company deploying ATM machines in Australia and importantly, the only listed ATM company having a direct ownership interest in the manufacturer of its ATM technologies, namely NeoICP, a South Korean private company.
Stargroup Limited became the exclusive distributor of the cashPod ATM range including the recycler ATM, back office and payment technologies in Australia for the next 5 years on 7 August 2015.
Stargroup Limited, via its wholly owned subsidiaries, StarPOS and StarApps, is also an EFTPOS and payWave technologies provider and developer of the source code in its terminals via its 5 year distribution agreement with West International AB, a Swedish NASDAQ listed company, to distribute next generation EFTPOS payment terminals and solutions in Australian and New Zealand.
Go to Company Profile for: Star Payment Systems
Announcement Contact: [email protected]
