News

Price for Australia's Cashcard said to be $148M

December 23, 2003

SYDNEY - The nation's biggest provider of ATMs, Cashcard, will be purchased by Colorado-based First Data Corp after its owners decided to call off an initial public offering.

(See related stories First Data to expand ATM activities in Australia with purchase of Cashcard and Australia's Cashcard planning big stock sale)

First Data International managing director Greg Nash said terms of the deal were confidential. But he said previous reports suggesting an equity value for Cashcard of well over $200 million (U.S. $148 million) "were in the neighborhood."

According to a report in the Australian, Cashcard is an unlisted public company with about 49 percent of the independent ATM market and around 10 percent of the debit and credit processing market.

It drives 5,600 ATMs, which are located mostly in retail outlets, with some located at credit unions.

First Data, for its part, is Europe's biggest independent credit and debit-card processor and  the largest independent processor of EFT services in Australia.

Nash told the Australian there was a "strong, two-to-three-year growth curve" in ATMs. "But we'd like to see improved volumes in the existing network," he said.

Cashcard's shareholders include Gresham Private Equity with a 29 percent stake, Suncorp with 15 percent, St George Bank with 8 percent, Adelaide Bank with 5 percent and Bendigo Bank with 4 percent. A further 15 percent is owned by the building society network.

The deal is contingent on the approval of various regulators, including the Reserve Bank of Australia and the Australian Competition and Consumer Commission.

It requires the approval of 75 percent of shareholders. Completion is expected by the first quarter of next year, according to the Australian.