1st Dec 2008 11:05
NEOVIA Financial Plc
NEOVIA announces agreement to acquire IDT's European
Prepaid Payment Services Division for US$ 15.05 million
Deal will create one of Europe's largest independent prepaid debit card businesses
Monday, 1 December 2008 - NEOVIA Financial Plc ("NEOVIA" or the "Company") (LSE: NEO), a leading independent, global provider of online payments, announces an agreement to acquire IDT Corporation's (NYSE: IDT; IDT.C) European Prepaid Payment Services Division for a total cash consideration of US$ 15.05 million (approximately £ 10.0 million) to be satisfied out of the Company's existing cash resources.
Highlights:
Agreement to purchase the entire issued share capital of IDT Financial Services Holdings Limited (owner of IDT Financial Services Limited ("IDTFS")) and certain other assets which together provide prepaid MasterCard® products in the UK market under the IDT "Prime Card" brand.
Total cash consideration of US$ 15.05 million to be paid to IDT Corporation on completion - this includes US$ 10 million of banking regulatory capital.
Key strategic acquisition for NEOVIA, adding new product lines and distribution based on the IDT Prime Card, accelerating the development of NEOVIA's prepaid Net+ card business and rapidly increasing the Company's active NETELLER e-wallet customer base.
In combination with NEOVIA's Net+ card services, creates one of Europe's largest independent prepaid debit card businesses.
Acquisition of IDTFS, which operates under a banking licence issued by the Gibraltar FSC, will allow development in the long term of additional financial services for NEOVIA's consumer and merchant customers.
Acquisition conditional on Gibraltar FSC regulatory approval and MasterCard consent.
Commenting, Ron Martin, President & Chief Executive Officer of NEOVIA, said "The acquisition of IDT Finance represents a major milestone in the development of our financial services offering to both our consumers and merchants and in our overall strategy to diversify our business. The integration of IDT Finance's well-regarded prepaid debit card operation and banking licence will enable us to leverage our existing capabilities to offer additional products and services. We welcome IDT Finance to NEOVIA and look forward to developing the full potential of the business as part of our broader strategic vision."
Howard Jonas, Chairman of IDT Corporation, said that the acquisition would benefit consumers. "NEOVIA's considerable resources and expertise will expand the range of financial services available to IDTFS customers while nicely complementing NEOVIA's existing capabilities."
Founded in 2006, IDTFS has a banking licence issued by the Financial Services Commission (FSC) Gibraltar and is a principal member of MasterCard®, specialising in the creation and distribution of prepaid debit cards across Europe. IDTFS launched the Prime Card, the UK's first over-the-counter, instant-issue instant-use prepaid MasterCard® in September 2006. IDTFS, the principal operating subsidiary, reported revenues for the year ended 31 July 2008 of £1.40 million and a loss before tax of £1.85 million. At 31 July 2008, IDTFS had net assets of £7.66 million (excluding £4.03 million of intercompany liabilities which will be written off prior to completion).
The proposed acquisition is subject to the approval of the Gibraltar FSC of the transaction and MasterCard not objecting to the proposed change of control of IDTFS.
NEOVIA expects that the acquisition will be accretive to earnings before one-off costs in the first full year after completion assuming that completion occurs early in 2009.
For further information contact:
Andrew Gilchrist + 44 (0) 1624 698 713
VP Communications, NEOVIA Financial Plc
Email: [email protected]
Citigate Dewe Rogerson + 44 (0) 207 638 9571
Sarah Gestetner / George Cazenove
Daniel Stewart & Co Plc + 44 (0) 207 776 6550
Paul Shackleton
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About NEOVIA Financial
Trusted by consumers and merchants in over 160 countries to move and manage billions of dollars each year, NEOVIA Financial Plc (formerly NETELLER Plc) operates the world's leading independent online payments business. Through its Payment Suite, featuring NETELLER®, NETBANX®, Net+™ and 1-PAY™ brands, NEOVIA Financial specialises in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance. Being independent has allowed the company to support thousands of retailers and merchants in many geographies and across multiple industries.
NEOVIA Financial Plc is quoted on the London Stock Exchange's AIM market, with a ticker symbol of NEO. Subsidiary company NETELLER (UK) LTD is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about NEOVIA Financial visit www.neovia.com or contact us by email at [email protected]. NEOVIA Financial Plc recently changed its corporate identify from NETELLER Plc to better reflect the strength and breadth of its individual product brands. At the same time its ticker symbol changed from NLR to NEO.
About IDT Financial Services Limited
IDT Financial Services Limited has a banking licence issued by the Financial Services Commission (FSC), Gibraltar, under the Gibraltar Financial Services (Banking) Act. IDTFS' debit cards are issued in partnership with MasterCard International and IDTFS is able to offer its services and products in the United Kingdom following notification to the United Kingdom Financial Services Authority (FSA) pursuant to the Gibraltar Financial Services (Banking) Act which gives effect to Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 which recasts the Banking Consolidation Directive 2000/12/EC. For further information, visit www.idtfinance.com.
About IDT Corporation
IDT Corporation (www.idt.net) is a consumer-focused multinational holding company.
It is possible that this announcement could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Reliance should not be placed on any such statements because of their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and NEOVIA's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. The statement concerning expected earnings accretion in this announcement should not be interpreted to mean that the future earnings of the enlarged NEOVIA group for current or future financial years will necessarily match or exceed the historical or published earnings of NEOVIA.
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