STRATEGIC PARTNERS
March 24, 2002
LONDON -- De La Rue Cash Systems, a major supplier of cash dispensing mechanisms to the ATM industry, is getting into the ATM manufacturing business with its acquisition of the banking automation business of Papelaco, a supplier of ATMs, kiosks and related products in Portugal and Spain.
Under the terms of the agreement, De La Rue expects to pay €26 million for the business. Approximately 400 sales, service, R&D, manufacturing and administrative staff based in Portugal and Spain will be integrated into its Cash Systems division.
Papelaco's banking automation business reported turnover of €35 million for 2000/01, with more than 75 percent of its business in Portugal. According to the Nilson Report, Papelaco sold 2,517 ATMs in Europe in 2000, down 17 percent from 1999. Papelaco also shipped 93 ATMs to Africa, nine to Central America and three to the U.S., according to the Nilson figures.
According to a news release, the move is part of De La Rue's strategy to offer its financial institution customers an end-to-end cash handling solution and to further develop its position as the leading cash handling solutions supplier.
Germain Roesch, managing director of Cash Systems' Financial Institutions business said Papelaco's products provide "a natural extension" to De La Rue's own offer to financial institutions.
Pietro Armanini, De La Rue Cash Systems' managing director said that De La Rue's strong international distribution network and its relationships with many of the world's leading banks, combined with Papelaco's banking automation products, will enhance its offering to financial institutions.
"Blending, sharing and developing the knowledge of our two organizations can only benefit our customers," he said.
