GRG to acquire eFunds Group

ATM operator GRG International (ASX:GRG) has proposed to purchase the eFunds Group in a transaction worth up to $15m

GRG International (ASX:GRG) has proposed to acquire fellow ATM operator eFunds Group for up to $15 million.

Under the proposed deal GRG, through subsidiary GRG International Holdings, will acquire each of the companies within the eFunds group – eFunds Pty Ltd, ATM Serve and Electronic Retail Solutions.

The purchase price will be paid in two tranches, with the first payment to be $6.6 million, split equally between cash and shares.

The second tranche will be calculated based on eFunds' performance for the calendar year 2011, capped at a maximum of $8.4 million.

GRG said the deal, which requires shareholder approval, would be funded through existing reserves and a finance facility from a major Australian bank. It is expected to contribute annual revenue of at least $10.4 million and ebitda of $3.6 million in calendar 2010. The eFunds Group was established in 1998, and operates mainly in the Sydney Metro area. The company is the exclusive outsourced partner to Suncorp for the deployment of Suncorp branded ATMs.

Currently 239 ATMs have been installed under the Suncorp agreements, and the partnership is expected to increase by at least 70 extra units per year until the existing deal expires in September 2015.

GRG International listed on the ASX in August. The company distributes ATMs and banking products - including offerings that meet Australia's upcoming 'chip and pin' compliance standards, which are due to take effect in 2012.

GRG shares climbed 8.7 per cent on Monday to $0.250 following the announcement. The shares went public at around $0.240.

Join the Computerworld Australia group on Linkedin. The group is open to IT Directors, IT Managers, Infrastructure Managers, Network Managers, Security Managers, Communications Managers.

More about: eFunds, Suncorp
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: GRG International, eFunds Group, ATM, business
All whitepapers

Telcos seek to strengthen NBN Co wholesale restrictions

Sign up now to get free exclusive access to reports, research and invitation only events.

Computerworld newsletter

Join the most dedicated community for IT managers, leaders and professionals in Australia