STRATEGIC PARTNERS
August 29, 2001
MEMPHIS, Tenn. - ATM transaction processorConcord EFS, Inc.(NASDAQ:CEFT) announced Thursday that it has competed plans to bring the three networks under one pricing structure, a move the company has planned as part of a consolidation strategy.
The terms of the price structure will be announced to Concord's more than 6,000 clients through letters that are being sent starting this week. The structure will take effect January 1.
According to the company, the new price structure is part of an overall plan to bring all three networks under the Star brand. The company's other networks are Cash Station and MAC. The company plans to integrate multiple operating platforms and implement a single operating policy as part of the consolidation.
"We assured our network participants that we would move quickly to consolidate our three networks, and this key piece of the strategy is the latest achievement in that commitment," Edward Labry III, Concord president and Star chief executive officer, said in a press release. Labry added that the consolidation would lay the foundation for launching new products and services to benefits retailers, financial institutions, and customers.
Concord purchased Star Network Inc. in February. At the time, Concord officials said it would take about three years to bring MAC and Cash Station ATMs under the Star banner.
In other news, Concord announced that Bank of America would end its participation in the STAR network, but would continue using Concord's processing network. Bank of America was the only Star client that did not sign a long-term agreement when the Concord-Star deal was reached in February.
In the press release, Dan Palmer, Concord chairman and chief executive officer, said the loss of Bank of America was not expected to have a significant impact on Concord's financial outlook.
"We remain comfortable with the analysts' consensus earnings estimates for 2001 and 2002," Palmer said.
