DirectCash Payments has signed an agreement to acquire the ATM business of Ezeatm in Australia for A$14.1m.
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Upon closing of the transaction, the company will acquire approximately 1,325 ATM sites and related contracts increasing the total number of DirectCash Payments ATM active terminals in Australasia to approximately 7,520. This represents a 21% increase in active ATM terminals in Australasia from the second quarter of 2014.
The acquisition is expected to improve DirectCash Payments’ funds from operations per share in the first fiscal year following the transaction. DirectCash Payments expects to fund the transaction through its revolving credit facility.
Jeffrey Smith, president and CEO of DirectCash Payments, said: "We are very excited about this strategic tuck-in acquisition for our Australian business, as it offers significant economies of scale, cost savings and bolsters our existing position in the Australian marketplace as the largest independent network of branded ATMs.
"Eze has a large ATM portfolio in Australia and we are excited to have the opportunity to add the Eze business to our operations, and continue to build our presence internationally."
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By GlobalDataSubject to approval of Eze’s shareholders and certain closing conditions, the acquisition is expected to close in the fourth quarter of calendar year 2014.
