3rd Mar 2005 07:00
NETeller PLC03 March 2005 NETeller completes first Asian acquisition London, England - 3 March 2005 • Acquisition of Quick Access, a Macau based debit card payment processing company. • Total consideration of USD 12.5m (GBP 6.6m) in cash payable over two years. • One of several initiatives that NETeller expects to complete as part of its expansion programme in the region. • Asia Vice President & General Manager appointed. NETeller Plc ("NETeller" or the "Company"), a leading online money transferservice provider, announces that it has acquired Quick Access InternationalCompany Limited ("Quick Access"), a debit card payment processing companybeneficially owned by CTM, a Macau telecom service provider. This strategicacquisition facilitates the provision of NETeller's payment services to China.Quick Access has developed strong partnerships in China that provide robustaccess to the Chinese payment network. As a result, Quick Access is thepreferred payment processor of its type and has been the first choice for thoseof NETeller's registered merchants that are developing services in China. The maximum purchase price of the acquisition is MOP 100 million (USD 12.5million or GBP 6.6 million - see note below). Sixty percent of the purchaseprice was payable on completion, and twenty percent of the purchase price isconditionally payable on each of the first two anniversaries of completion (3March in 2006 and 2007) subject to Quick Access maintaining contractualrelationships with certain key business partners. Quick Access was started two years ago and currently processes approximately USD50 million of debit card payments annually. As an already profitable company,the strategic acquisition of Quick Access is expected to be earnings enhancingin the current year. Initially, a simplified e-wallet that is independent of NETeller's e-wallet willbe integrated with Quick Access. As experience in Asia accumulates over thecoming months and following internationalisation of NETeller's primary paymentplatform to accommodate Asian languages and currencies, it is planned that theQuick Access payment platform will be fully integrated with NETeller. This acquisition, coupled with the appointment of Mr Benjamin Lee to leadoperations in Asia, provides the Company with an important business base andinfrastructure in Asia. Mr. Lee is appointed as Vice President & GeneralManager - Asia, and is a former payment industry executive and former DeputyTrade Minister for the Hong Kong government. Gord Herman, CEO of NETeller plc, stated: "Launching our services in the Asianregion is our highest strategic priority at present and we have therefore beenvery busy with preparatory work on several fronts. By integrating an e-walletpayment platform with Quick Access, NETeller expects to generate significantgrowth in its processing volumes and profitability. The acquisition of Quick Access is one of several initiatives that NETellerexpects to complete as part of its multi-year Asian expansion programme". Note: Based on exchange rates of USD 0.1245 and GBP 0.06535 respectively per MOP Enquiries NETeller PLC (01624 698 702) Gord Herman/Dale Johnson Citigate Dewe Rogerson (0207 638 9571) Sarah Gestetner/Seb Hoyle/George Cazenove Notes to Editors Quick Access International Company Limited Located in Macau, Quick Access International Company Limited operates under alicence granted by the Macau Special Administrative Region to facilitatee-commerce activities. Quick Access enables companies to accommodate Internetpayments directly from Asian consumers using prepaid cards, credit cards, anddebit cards. Quick Access has developed robust regional partner and bankingrelationships to facilitate online payment processing. Transactions are carriedout on secure servers, ensuring that all personal and merchant information iskept totally private. The NETeller Group The NETeller Group operates an online money transfer service that utilises andextends the existing international banking structure to provide a secure meansof transferring funds worldwide. A NETeller account acts as a virtual walletthat enables members (individuals who open NETeller accounts) to load, withdrawand transfer funds by purchasing e-money. E-money can be instantly transferredto or from any merchant (or internet site) that supports NETeller's onlinepayments system. Additionally, funds can be transferred between members inpeer-to-peer exchanges. NETeller has over 1.3 million members and more than1,400 supporting merchants, making the company a leader in online paymentservices. NETeller UK Limited is authorized by the Financial Services Authority(FSA) to operate as a regulated e-money issuer. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Paysafe Group