Company Name: Star Payment Systems
Announcement Date: 13/01/2017
Announcement Category: Team Update
Announcement Content:
Stargroup (ASX:STL) has executed all agreements in relation to the acquisition of the Indue Ltd ATM switching, settlement, processing, telecommunications and reseller business.
The final agreements with Indue were executed on 30 December 2016 and the transaction is proceeding on an unconditional basis and will complete no later than 24 January 2017.
Stargroup has also executed an agreement for a debt facility totalling $15 million to fund the Indue acquisition and other EPS accretive acquisitions on commercial terms with a Sydney based credit fund.
Todd Zani, CEO, commented: “I have met with a considerable number of our new customers and there has been exhaustive planning undertaken by both Indue and Stargroup to ensure a smooth transition of services, post completion of the acquisition.”
“The 2016 year was truly a transformational year for the business and the 2017 year, looks even better.”
Debt facility details
Stargroup has agreed to commercial terms in relation to a debt instrument for a maximum of 15 million to fund this acquisition and other potential acquisitions.
This facility includes free attaching options on a 1 for $1 basis with an exercise price of $0.10 per option to acquire one Stargroup share, with a 3 year exercise period.
These options were approved by Stargroup shareholders at the recent annual general meeting held on 29 November 2016.
Background
Stargroup is a dual listed technology company that owns a 350+ ATM network in Australia and provides EFTPOS and payWave technologies, and has a 11% interest in NeoICP Korea Inc, the manufacturer of cashPod ATMs, back office and casino settlement solutions.
Stargroup offers two key products - ATMs and EFTPOS terminals.
Stargroup recently completed its due diligence of the ATM switching, settlement processing, telecommunications and ATM reseller business operated by Indue Limited.
This transaction is now proceeding on an unconditional basis.
Indue provides services to circa 70 ATM deployers, 1,700 ATMs, 1,350 modems and processes 12 million transactions per annum.
Analysis
The acquisition of Indue will support Stargroup as it continues its revenue growth and will also provide the business with synergies.
The $15 million funding facility allows Stargroup to not only complete this acquisition but it will also enable it to explore further merger and acquisitions without the need to issue further capital.
Stargroup posted revenues of circa $2.4 million during the December quarter, the first quarter the company has eclipsed $2 million in revenues.
With the company now projected to eclipse $3 million in the current March quarter, it is clear the management team are driving Stargroup in the right direction.
Stargroup is in complete control of the ATM cash cycle from switching, processing, deployment, manufacture and cash replenishment.
The company is the only ASX listed ATM operator deploying in Australia and is the only ATM operator that has an ownership interest in its manufacturer being NeoICP.
Stargroup shares are up 13% in 2017, currently trading at $0.034.
Announcement URL: http://www.proactiveinvestors.com.au/companies/news/171572/stargroup-executes-final-agreement-for-indue-acquisition-171572.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]
