Company Name: Star Payment Systems
Announcement Date: 17/01/2017
Announcement Category: Team Update
Announcement Content:
Perth-based Stargroup has amassed a $15m war chest to complete its purchase of Indue’s ATM business and fund further acquisitions, indicating that 2017 might be another standout year at the financial technology and ATM machine business.
Stargroup, which is dual listed on the ASX and Frankfurt Stock Exchange, said on Friday it had now fully executed all agreements relating to the hotly-anticipated acquisition of Indue’s ATM machine switching, settlement, processing telecommunications and reseller assets, with settlement scheduled for completion late January.
Indue provides services to around 70 ATM machine operators involving some 1,700 ATMs, 1,350 modems and it processes 12 million ATM machine transactions per annum.
The acquisition, once completed, is expected to bolster the bottom line at Stargroup by around $1.7m in EBITDA per annum.
In Friday’s funding update, Stargroup also said it had agreed to commercial terms for a $15m debt instrument to fund the Indue acquisition, however the balance of the facility would also be used to fund other potential acquisitions in the period ahead.
The debt facility agreement had been executed with a Sydney based credit fund, on commercial terms, company management said.
Stargroup chief executive and executive Todd Zani said: “We are very excited to announce to the market that the asset sale agreement and all other agreements with Indue have been executed and that this transaction is proceeding on an unconditional basis.
“We are also exited to announced that a Sydney based credit fund has approved the funding for this acquisition on commercial terms which not only enables us to complete this acquisition but it will also enable us to explore further merger and acquisitions without the need to issue further capital.”
The announcement is a bullish signal from Stargroup heading into 2017 as the company experiences a stellar, and prolonged, period of growth.
Last week, Stargroup posted its 12th record quarter of revenue in the three months to December, representing year-on-year ATM revenue growth of over 200 per cent.
Mr Zani said the $15m war chest would also enable Stargroup to accelerate its EFTPOS business opportunities in 2017.
“The 2016 year was a truly transformations year for the business and the 2017 year looks even better,” he added.
Stargroup is the only ASX listed company deploying ATM machines in Australia and it also has an 11 per cent interest in NeoICP Korea Inc, a Korean business that manufactures the ATM machines that Stargroup use and sell.
Announcement URL: https://www.businessnews.com.au/article/Stargroup-creates-15m-war-chest-for-further-mergers-and-acquisitions
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]
