Stargroup (ASX : STL) increases owned ATM Network by 35% with FastCash ATM Acquisition

Company Name: Star Payment Systems

Announcement Date: 02/06/2017
Announcement Category: Merger/acquisition
Announcement Content:

Financial technology company Stargroup Limited (ASX: STL) has significantly expanded its Australian
Automatic Teller Machine (ATM) network through the acquisition of Fast Cash ATMs Australia Pty Ltd,
owner of a 134 ATM network and associated business assets, trading as Fast Cash ATM Services
(FastCash).

The acquisition of FastCash will take the total number of operational Stargroup ATMs to over 500
machines processing some 4.5 million transactions each year and current annualised revenue of
greater than $13.5 million in the ATM division of Stargroup, which now includes the brands Star
Payments, StarATM, Cash My ATM and FastCash.

The ATMs acquired are deployed across New South Wales and together process some 1 million
transactions annually.

The FastCash ATM network has been in operation for over 7 years and the business assets acquired
include 134 ATMs and site agreements, the Fast Cash ATM services brand, modems and ATM
inventory. Existing FastCash liabilities, including for staff entitlements, do not form part of the
acquisition. One staff member will become an employee of Stargroup.

No shareholder approval is required for the acquisition and the acquisition was completed on 1 June.

Stargroup has paid $4.2 million for the acquisition.

The cash component for the acquisition was funded by way of a $4.2 million drawdown of a $7.5 million
funding facility.

Stargroup expects as at 1 June 2017:
• that its projected total assets will increase by $4.2 mil to $32.8 mil;
• that its borrowings will stand at $7.8 million;
• that there will be no change in the company’s total equity interests;
• that its projected annualised revenue for FY18 will increase from $17.9 million to $20.1 million;
• that its projected earnings before tax and extraordinary items (EBITDA) for FY18 will increase
from $4.75 million to $5.75 million; and
• that its projected free cash flows from operations in FY18 will increase from $3.67 million to
$4.67 million.

Mr Todd Zani, Stargroup’s CEO and Executive Chairman said that, this was an excellent acquisition of
another quality ATM network that was negotiated during the course of the Indue acquisition and
settlement.

The delayed Indue settlement will result in a delay in the planned dividend payment this year but this is
an excellent addition to the stable of assets owned by the Group.

“Stargroup is excited to make another quality acquisition and add another quality brand to the stable of
brands owned by the Group and increase our owned ATM estate by 35%. This is included in the estate
of over 2,400 ATMs that we are now managing in Australia.

We are now focusing on organic growth and further developing the excellent foundations that we have
layed in the last few years across all of our divisions. We have clearly outlined in our strategy that we
would target smaller unlisted ATM deployers for value accretive mergers and acquisitions and this is a
high quality network which we have tucked in to our operations and it will further strengthen the free
cash flows from the business in FY18.

This network was already using StarLink as its payment processor and as a result the tuck-in will be
done with the minimum of fuss and the vertical integration of this subsidiary has already occurred.” said
Mr Zani


Announcement URL: http://clients3.weblink.com.au/pdf/STL/01862102.pdf
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]entsystems.com.au

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