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BREAKING: TRM buys ATM ISO Access to Money for $15 million

April 20, 2008

Whippany, N.J.-based LJR Consulting Corp., d.b.a. Access To Money, sold for $15 million.

TRM says it expects the acquisition to help it continue its improvement of operating efficiencies and improved results.

To fund the ATM buy, TRM on Friday received a loan for $11 million from LC Capital Master Fund Ltd.

"We are pleased to secure this facility, especially in this difficult funding environment," said TRM president and chief executive Richard Stern. "This allowed us to complete our acquisition of Access To Money, which we also closed today and announced separately as well as help resolve longstanding financial issues at TRM. Ultimately, these two initiatives are the cornerstone for our future growth and success, and we appreciate the support we received from our lenders today,"

In addition to the acquisition of Access to Money, the loan is being used by TRM to pay eFunds Corp. the remaining $2.5 million it owes for the 17,200 ATMs it bought from eFunds in September 2004 — a deal that made TRM the second-largest ATM operator in the world, and one that ultimately led to its near financial collapse in 2006.

TRM says it also will use the loan to satisfy its remaining loan to GSO Capital Partners, as well as to pay the $1 million it still owes United Kingdom-based  NoteMachine Ltd., which in January 2007 bought TRM's European ATM subsidiary, TRM Ltd.

According to a news release, TRM is paying for Access to Money through a combination of cash, TRM stock and a note.

Doug Falcone, Access To Money's president and CEO, is joining TRM as part of the deal. Falcone has been named TRM's new chief operating officer.

Boston-based Tremont Capital Group Inc., which specializes in mergers and acquisitions in the ATM space, assisted in the transaction.

"Access To Money is a respected industry leader with strong vendor relationships and a first-class provider," Stern said. "This acquisition is further evidence of our commitment to providing our customers with exemplary service and will further our efforts toward achieving operational excellence and increased profitability."

A comeback?

In April, TRM reported a lesser annual loss on lower revenue — a sign that the once ATM giant might finally be tightening its financial belt.

For 2007, TRM said its revenue dropped 16 percent when compared to 2006; and its net loss also decreased, from a loss of $120 million, $7.05 per share, in 2006 to a loss of $8.4 million, 49 cents, in 2007. The company's revenue dropped, in part, because of the sale of its U.S. and U.K. photocopier businesses as well as the sale of its European and Canadian ATM businesses.

TRM had 39 employees at the end of 2007, down from 364 at the end of 2006. The company also has undergone a number of management shifts, including the naming of three CEOs in nearly three years. Stern has been at the company's helm since June 2007.

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