News

ATM provider DirectCash offers cash for Customers

April 3, 2012

DirectCash Payments Inc., Canada's largest branded ATM operator, announced that it will purchase Australian IAD Customers Ltd. for A$173 million (US$179.9 million). DirectCash expects to fund the transaction through a combination of debt and equity financing.

Customers operates Australia's largest ATM network and has a growing presence in New Zealand, according to a news release from DirectCash. Through the transaction, DirectCash will gain a leading market position in the Australian ATM market, where it currently has existing operations in prepaid cards.

The transaction has been approved by boards of directors for both companies and remains subject to a vote by Customers shareholders. If approved, the transaction is expected to close early in the third quarter of 2012.

The acquisition will bring approximately 6,300 ATMs in Australia and New Zealand into the DirectCash portfolio and will bring the company's total ATM count to 14,200. It will make the company one of the largest publicly traded branded ATM providers in the world, with operations in Canada, Australia, New Zealand, Mexico, the U.K. and the U.S.

Through the acquisition, DirectCash hopes to expand in the still-growing Australian ATM market, and also create a platform for growth throughout Asia Pacific.

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