SCOTTSDALE, Ariz. -- eFunds Corporation (Nasdaq: EFDS), a provider of electronic payment, risk management and related information technology and business process improvement services, will purchase all of the remaining equity interests in ISO Access Cash International, L.L.C. for approximately $43.9 million in cash.
"When eFunds first acquired a minority interest in ACI last year, we did so as a means of determining whether our involvement in the management and deployment of ATMs would fit well with our existing businesses and provide added value for our customers and shareholders. We have concluded that it will," said Gus Blanchard, eFunds chairman and chief executive officer.
Blanchard said that the Access Cash network will generate additional transaction volumes and revenues for eFunds, as well as help eFunds develop new or, in some cases, expanded relationships with retailers. "In time, we also expect to use our debit software expertise to deliver unique features through these ATMs that would otherwise not be available to merchants and consumers," he said.
In July, Access Cash announced a branding agreement under which it offers surcharge-free access to 6,500 of its 8,500 ATMs to cardholders of the Ontario, Calif.-based Co-Op Network. The network, which has 772 credit union members, also has a processing contract with eFunds.
Gene Polito, Co-Op Network chief operations officer and executive vice president, told ATMmarketplace.com that the eFunds relationship served as "somewhat of a catalyst to move the (Access Cash/Co-Op Network) relationship along."
The transaction is expected to close in October 2001, subject to regulatory approvals and other closing conditions. eFunds anticipates that the transaction will be accretive in 2002 and beyond. In March 2000, the Company paid $20 million in cash for an approximate 24 percent stake in Access Cash.
Blanchard said, "Because of our existing ATM deployment agreement with Access Cash, this acquisition won't have a material impact on our reported revenues for this year. However, we do expect to see significant growth in the revenues and operating margins of this business going forward."
