Last checked at 29 Mar 2010 16:53
For immediate release
29th March 2010
DataCash Group Plc: DATA / Index: AIM / Sector: Support Services
DataCash Group Plc ("DataCash" or "the Company")
DataCash Acquisition of outstanding 23.63% of DataCash Fraud Services Limited ("DataCash Fraud Services")
DataCash Group Plc, the AIM-listed Payment Services Provider, is pleased to announce that it has completed the purchase of the remaining 23.63% of DataCash Fraud Services, so that it now owns 100% of DataCash Fraud Services. DataCash Fraud Services, a subsidiary of DataCash, was incorporated in order to acquire The 3rd Man Group plc ("The 3rd Man"), which completed in January 2009. At the time of the acquisition of The 3rd Man, key management in The 3rd Man exchanged their shares in The 3rd Man for a 23.63% share in DataCash Fraud Services. DataCash Fraud Services is a UK based company specialising in providing software to manage fraud for online Credit and Debit card and alternative payments.
Total consideration for the acquisition is expected not to exceed £2.7 million. This comprises an initial payment of £1.2 million in cash and additional amounts payable in loan notes which in aggregate are not expected to exceed £1.5 million in principal and are subject to an earn-out structure which includes certain performance criteria. However, if revenues from new customers, or increased revenues from renewed customers, over the next two financial years exceed £3 million, further loan notes to the value of 15% of the excess over £3m would be issued. For the year ended 31 December 2008, The 3rd Man reported audited revenues of £1.15m; for the year ended 31 December 2009, DataCash Fraud Services reported unaudited revenues of £1.70m.
The acquisition is expected to be earnings enhancing for the year ended 31 December 2010 and will be funded from DataCash's existing cash balances.
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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
Nominated Adviser - Investec
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.