STRATEGIC PARTNERS
January 7, 2002
LEAWOOD, Kan. -- Euronet Worldwide (NASDAQ: EEFT) is selling its DASH EFT network, which began operations in 1996 and now drives 531 ATMs for 24 customerss in 35 states and one US territory, to ALLTEL Information Services.
In a separate agreement, Euronet granted ALLTEL extensive license rights to Euronet's Integrated Transaction Management (ITM) software system, which provides transaction switching, interfaces to the major payment networks and management of ATM and debit card transaction processing, as well as POS and merchant management systems.
The purchase price for DASH was approximately $6.8 million, with $650,000 going into an escrow account for one year. ALLTEL will pay $5 million to license the software.
Under the terms of the agreement, Euronet may continue to provide EFT processing services in the U.S.
ALLTEL previously worked with Euronet's software through mutual clients and has developed interfaces to its retail delivery and back office systems for Euronet's Integrated Transaction Management software engine. The DASH network, Euronet's software and ALLTEL's Integrated Financial Solutions division operate on IBM's iSeries platform, formerly known as the AS/400 platform.
"The DASH network agreement and the software license agreement are integral parts of our strategy to provide end-to-end financial solutions to our clients," said Gary Norcross, president of ALLTEL's Integrated Financial Solutions division. "DASH provides us with an established market solution, and a level of brand recognition in the industry."
Daniel Henry, Euronet Worldwide president and chief operating officer, said, "Our unique ATM driving and transaction processing solutions are our core business, and we will continue to focus on our fastest-growing markets of Europe, Middle East and Asia Pacific."
Euronet owns and operates the largest independent ATM network in Europe, with corporate headquarters in Leawood, Kan., and European headquarters in Budapest.
"This deal exemplifies our commitment to strategies that significantly increase shareholder value," said Michael J. Brown, Euronet Worldwide chairman and chief executive officer.
Euronet Chief Financial Officer Kendall Coyne said the agreements are a "strong financial play" for Euronet and will help the company reduce its debt by about $8 million, to approximately $33.8 million.
A replay of a Jan. 4 analyst conference call may be heard by dialing 800-873-2026 (U.S.) or +1-402-220-5359 (non-U.S.)
