Euronet Worldwide, via its Ukrainian subsidiary, Euronet Ukraine LLC, announced the acquisition of ATMs from UkrSibbank, a subsidiary of BNP Paribas and the third-largest bank in the Ukraine. The agreement for the acquisition of 172 ATMs follows the November 2011 purchase of 116 ATMs from UkrSibbank and doubles Euronet's presence in the market.
Euronet operates the only shared ATM network in Ukraine and has contracts with five leading Ukrainian banks for network participation. The newly acquired ATMs are in convenient, high traffic, off-bank-premise locations and will be integrated into Euronet's network. The expansion of this partnership with UkrSibbank demonstrates Euronet's continued success in executing its strategy to consolidate banks' off-premise ATMs to an independently deployed and shared network model.
This contract includes a seven-year agreement for the bank's participation in Euronet's shared network, which provides the bank's customers the ability to use Euronet ATMs under the same terms and conditions as the ATMs of their own bank. The agreement with UkrSibbank also expands Euronet's geographic footprint in the country from Kiev to the other five largest cities in Ukraine.
"UkrSibbank's cooperation with Euronet brings significant benefits for the bank and our customers. Euronet's experience in managing and operating ATMs enables the bank to focus on our core business, while our customers benefit from higher service levels due to the convenience of the Euronet locations and high ATM uptime," said Konstantin Lezhnin, board member at UkrSibbank.
"Euronet is proud to expand our relationship with UkrSibbank. This partnership reflects a growing global trend of banks consolidating their ATM Networks," said Nikos Fountas, vice president and managing director of Euronet's EFT Europe division. "Our bank customers benefit from lower operating costs while their customers benefit from access to a wider ATM network as well as to an extended set of value added service.
For more on this topic, visit the distributor/ISO/IAD research center.
User Comments