SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS - news) is purchasing certain ATM assets from Hanco Systems, the Atlanta-based independent provider of ATM services which has a portfolio of more than 2,500 ATMs in 30 states.
eFunds is acquiring all of Hanco's U.S.-based owned or leased ATMs and merchant contracts. In October, eFunds purchased another major ISO, Access Cash, for approximately $43.9 million in cash after paying Access Cash $20 million for a 24 percent ownership stake in March of 2000.
Following the Hanco acquisition, eFunds will operate, manage and drive more than 11,000 ATMs in all 50 states and Canada.
According to eFunds, Hanco Systems' strong presence in the Midwest and Southeast is expected to enhance eFunds' existing ATM network in those areas. eFunds plans to consolidate the Hanco Systems ATM network into its Access Cash business over the coming months.
"Adding Hanco's U.S.-based ATM machines to our existing Access Cash network of off-premise ATMs is an important part of our strategy to build an integrated system of ATM services, which includes sales, management, branding and advertising,' said Gus Blanchard, chairman and chief executive officer of eFunds. "We believe there is untapped opportunity in ATM services and merchant processing among networks, financial institutions and retailers. We intend to expand the terminal network, and at the same time, improve the profitability of the machines already deployed.'
eFunds anticipates that the transaction will be accretive by the end of 2002.
"We look forward to the opportunities our new relationship with eFunds presents,' said Tom Hannon, president and CEO of Hanco Systems. "We believe this acquisition is good for the industry and for Hanco Systems' and eFunds' customers.'
