Company Name: Star Payment Systems
Announcement Date: 30/05/2017
Announcement Category: Team Update
Stargroup (ASX:STL) and banking services provider Goldfields Money (ASX: GMY) have doubled their existing ATM cash convenience agreement to $30 million for the next three years.
The strategic agreement provides Stargroup with cash to use for its national ATM network and allows Goldfields to put its excess cash reserves to work at low risk.
Given Stargroup’s organic growth and recent acquisition of Indue, it has recently boosted the number of ATMs it has under management to 2,414.
Todd Zani, CEO, commented: “We are pleased with the increase in our arrangement to $30 million based on a substantial increase in the demand for this product following our successful acquisition of Indue’s ATM assets.
“Our strategy is to become a leading player in both the ‘cash out’ and ‘cash in’ cycle in Australia and we are working closely with Goldfields Money as part of the strategy.”
Mutually beneficial partnership
The growing collaboration between Stargroup and Goldfields is mutually beneficial
The agreement has lowered Stargroup’s cash costs and in turn provided Goldfields with ATMs to service customers in remote locations and installed its “bank in a box” recycler ATM in Goldfields branches.
The two companies are committed to working together on additional financial products and further strategic alliances that benefits their mutual customer base.
Benefits of the recent Indue acquisition
Stargroup recently successfully executed the Indue transaction allowing the company to move forward with the vertical integration of the assets.
The vertical integration will see a key operating cost reduce by a further 15%.
The final result delivers strong metrics for Stargroup due to an increase in the Indue assets during the acquisition period.
Since Stargroup announced the acquisition, the Indue asset base increased by circa 30% to 2,414 ATMs under management (up from 1,700) and was processing circa 16 million transactions on an annualised basis (up from 12 million).
With the acquisition now locked away, Stargroup is able to positively revise its FY18 revenue estimates.
Announcement URL: http://www.proactiveinvestors.com.au/companies/news/177960/stargroup-doubles-size-of-goldfields-deal-due-to-atm-growth-177960.html
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]