STRATEGIC PARTNERS
February 26, 2002
BUDAPEST, Hungary -- Euronet Services Inc. announced a major agreement with Service Bank GmbH & Co. KG to acquire 252 installed ATMs in Germany and 35 ATMs in inventory.
"Germany has been one of the company's fastest growing markets and this acquisition is expected to significantly accelerate that growth," said Euronet CEO Michael J. Brown.
The purchase price for this established ATM network was $6.7 million. Under the agreement, which was effective as of January 1, Euronet receives monthly fees based on revenues realized from the ATMs, less certain expenses and management fees payable to Service Bank. The revenues generated from these additional ATMs, combined with Euronet's existing in-country network, will make Germany the company's largest market in terms of revenues.
The agreement also provides that Euronet and Service Bank will cooperate in expanding the ATM network and promoting the delivery of new services over the network. The new agreements extend existing arrangements under which Euronet has been providing services to Service Bank, and bring the total number of live ATMs owned and/or serviced by Euronet in Germany to approximately 450.
Euronet ATMs are located in seven European countries. Service Bank GmbH & Co. KG is a subsidiary of General Electric Capital Corporation.
