DALLAS -- Information technology company ACS (NYSE: ACS)announced the signing of a definitive agreement to sell its ATM processing and maintenance business for a purchase price of approximately $180 million.
ACS' ATM business is being acquired by Genpass, Inc. a newly-formed company funded by GTCR Golder Rauner, a Chicago-based private equity firm with more than $4 billion of capital under management.
Bipin C. Shah will serve as CEO of Genpass. "We want to continue to provide the highest level of customer service while taking our customers to the next generation of products and services through the Internet," Shah said.
ACS also plans to divest other non-strategic operations, primarily in the commercial professional services and systems integration area. The other divestitures are expected to be completed during the quarter ended Sept. 30, 2000.
ACS anticipates the net effect of the gain from the ATM divestiture and the net loss from the other divestitures will result in a non-recurring net positive earnings impact for the quarter ending June 30, 2000.
Jeff Rich, president and CEO of ACS said, "We concluded that ACS' future is providing end-to-end information technology and business process outsourcing solutions to commercial and government clients. These services represent the vast majority of our current revenues, our highest growth potential, and is where we will focus our efforts."
While we invest in a range of service-based companies, we are particularly interested in the following sectors:
o ATM operator company .We’re looking for companies that own portfolios of ATMs or process transactions for an ATM portfolio. Instead of looking at financial metrics, we’re looking for businesses with 50+ ATMs with at least 20 ATMs placed with the same customer (e.g. a chain of convenience stores). The machines should also be generating 350 or so surcharge transactions each per month. tri.continental@yahoo.com
