News

eFunds' purchase of Cash Resources is

January 19, 2003

SCOTTSDALE, Ariz. -- Though eFundshas yet to make an official announcement, proof of the company's late summer purchase of the Englewood, Colo.-based ISO Cash Resources can be found in its 10-Q form filed on Dec. 2.

According to that document, eFunds says that revenue from ATM management services, which are provided by its Access Cash International subsidiary, were $34.9 million in 2002's third quarter, an increase of $15.2 million from $19.7 million in 2001's third quarter.

ATM management services revenue increased $28.5 million to $83.1 million in the first nine months of 2002, from $54.6 million in the first nine months of 2001.

The document credits the increases to the acquisitions of ATM networks from Hanco Systems, Samsar ATM Company and Evergreen Teller Services -- all previously disclosed in news releases -- as well as Cash Resources.

According to the document, the four companies accounted for an aggregate of $14.4 million in new revenue during 2002's third quarter and $25.1 million in new revenue for the first nine months of the year.

Cash Resources contributed an aggregate of $4.4 million in revenues for the months of August and September 2002 and is expected to contribute revenues of approximately $6 million in 2002's fourth quarter.

"We continue to review opportunities to acquire other independent ATM deployment and management companies. Absent further acquisitions, we do not expect significant revenue growth from this segment in the immediate future, although we believe this business will exhibit improving levels of profitability as we seek to eliminate costs and improve efficiencies," according to the filing.