Last checked at 9 Sep 2008 15:34
RNS Number : 0667D
Datacash Group PLC
09 September 2008
9 September 2008
DATACASH GROUP PLC: DATA / Index: AIM/ Sector: Support Services
DataCash Group Plc (‘the Company’)
Acquisition of easyDebit GmbH
DataCash Group Plc, the AIM-listed Payment Service Provider, is pleased to announce that it has completed the purchase of easyDebit GmbH (“easyDebit”), a German Payment Service Provider based in Mannheim. easyDebit provides customers with electronic payment solutions, risk and accounts receivable management services. Its clients include Audible, an Amazon and Bertelsmann joint venture, Phillips and DHL Home Delivery.
Initial consideration for the acquisition is €3 million (£2.45 million) in cash, with a potential further deferred earn-out consideration of €5.75million (£4.7 million) in cash , which is both performance related and based on a certain period of time having elapsed. The acquisition is expected to be earnings enhancing for the year ended 31 December 2009* and will be funded from existing cash resources.
Since its foundation in 2002, easyDebit GmbH has been developing and increasing its customer base year on year. easyDebit focuses mainly on the retail and the leisure goods industries but has a strategy to further expand and diversify the scope of its customer base and international product offering.
This acquisition gives DataCash a greater foothold in the German market, Europe’s most populous and largest national economy and it presents a base for further opportunities in Europe. It will also allow DataCash to offer its existing clients more local payment products, and extend coverage of existing products such as ELV, commonly known as Bankeinzug, which is a popular payment method used by German online consumers. The enhanced Group services will enable clients to capture the full turnover potential of the German market.
Mr. Andre Boeder will remain as Managing Director of easyDebit and easyDebit will continue its business operations independently. Customers of easyDebit will benefit from this deal by the availability of a broader range of international payment services and the financial strength of the DataCash Group.
In light of the strategic importance of German business operations pursued by easyDebit, particularly in regard to the Central European markets, Mr. Andre Boeder shall be appointed to the Group’s Operational Management Board.
DataCash CEO, Andrew Dark said; “I am delighted that we have completed the acquisition of easyDebit. The purchase provides DataCash with additional key processing links into the leading payment instruments used by German consumers for shopping on line as well as adding strong local management and new customers to the overall Group. easyDebit will be accretive to the Group’s earnings in 2009 and the acquisition is entirely consistent with DataCash’s stated intention to expand our geographic coverage, thus enabling our clients to reach their existing and prospective consumers and offer them the most popular payment instruments with which to purchase goods and services within the local market.“
Notes: * This statement should not be construed as a profit forecast or be interpreted to mean that the future earnings per share or profits of DataCash Group Plc will necessarily be greater than the historic published earnings per share.
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For further information please contact:
DataCash Group PLC
Paul Burton Tel: +44 (0)870 72 74 76 0
Finance Director E-mail: Paul.Burton@datacash.com
Andrew Dark Tel: +44 (0)870 72 74 76 0
Chief Executive E-mail: Andrew.Dark@datacash.com
Carly Smith Tel: +44 (0)207 421 9283
Marketing and Communications Email: Carly.Smith@datacash.com
Nominated Adviser - Investec
Keith Anderson/Daniel Adams Tel: +44 (0)207 597 5970
Website: www.datacash.com
About DataCash
DataCash Group PLC (AIM: DATA), a market leading provider of payment processing
solutions, provides merchants with a single interface that allows them to process secure payments, both on and offline, anywhere in the world.
DataCash also provides a range of value added services with its fraud and Risk
Management solutions supporting AVS/CV2, 3-D Secure (Verified by Visa and
MasterCard Secure Code) together with traditional rules-based screening.
DataCash provides first-class service reliability at a fraction of the price of an in-house solution, servicing clients within the retail, travel, telecommunications and gaming sectors.
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