STRATEGIC PARTNERS
March 4, 2002
MEMPHIS, Tenn. -- Concord EFS, Inc. (NASDAQ: CEFT), the largest ATM processor in the U.S., will acquire Core Data Resources, a privately-held electronic transaction processor based in Amarillo, Texas that primarily serves the ISO market.
Core Data currently drives approximately 35,000 ATMs. Concord drives approximately 58,000 ATMs, including those signed and in the process of being converted to Concord's platform as of year-end 2001.
Concord, owner of the MAC network, just finalized its acquisition of Longmont, Colo.-based EFT Logix, another transaction processor with strong ties to the ISO market that drives about 10,000 ATMs.
In the past two years, Concord has also acquired the Cash Station and Star Systems EFT networks.
The Core Data acquisition, which company executives anticipate will close in the second half of 2002, is expected to be neutral to earnings in 2002 and accretive to earnings per share in future years. Terms of the agreement were not disclosed.
"Core Data has had considerable success in developing and marketing turn-key ATM processing services that are designed specifically for retailers and independent sales organizations, the fastest-growing segments of ATM deployment," said Edward A. Labry III, Concord president. "We believe that this core processing technology and Core Data's strength in the retail ATM deployer segment will complement Concord's existing ATM driving and monitoring services, while also creating potentially significant cost efficiencies in telecommunications and gateway expenses."
Campbell Burgess, Core Data president and chief executive officer, said, "Concord's strength and broad product offering in the financial institution, grocery and convenience store industries combined with Core Data's depth of expertise in ATM processing creates excellent cross-selling opportunities. Additionally, we believe that Concord's resources will help fuel technological advancements and product enhancements, which will give our customers the best of both companies."
