INDEPENDENT NEWS

Cadmus Acquires GDC EFTPOS Division

Published: Thu 31 May 2001 05:33 PM
FOR IMMEDIATE RELEASE
Cadmus Acquires GDC EFTPOS Division
Auckland – May 31, 2001 - Payment solutions and data management services provider, Cadmus Technology Limited (NZSE: CTL) today announced that it had agreed to purchase the EFTPOS arm of listed New Zealand telecommunications company, GDC Communications Limited.
The acquisition will increase Cadmus’ share of the national EFTPOS terminal market, add a new brand to its portfolio and create downstream opportunities for value added sales.
The agreement, which is conditional on the approval of both boards of directors, will see Cadmus acquire the business, equipment, equipment leases and stock, together with the customer base of GDC EFTPOS, for an undisclosed cash sum.
The acquisition adds new sales and distribution channels to Cadmus’ existing EFTPOS Abilities distribution network.
GDC EFTPOS currently operates outlets and distribution channels in Auckland, Northland and Wellington and, while looking to expand, will also be able to add the Keycorp and Cadmus range of EFTPOS products to its existing Hypercom range of EFTPOS terminals.
“This deal allows Cadmus to not only provide Keycorp and Cadmus terminals to a new base of customers, but also offer solutions based on Hypercom terminals to existing and potential clients,” says Cadmus Managing Director, Ian Bailey. “For example, we can now offer clients networking solutions and software applications unique to Hypercom terminals.
“The agreement complements increased sales, growing market share and has been funded by the recent $7.4 million financing facility, recently put in place to accelerate the growth of our equipment rental business.”
Last month, Cadmus secured private finance to underwrite development and growth of its equipment leasing book, which was initially funded internally.
“Increasing our capability and market share by acquiring a sound and profitable business is a great move for Cadmus,” adds Ian. “We expect, on current performance alone, this move will have a positive effect on our bottom line performance.”
While the business will be a wholly owned subsidiary of Cadmus, it will operate as a stand alone unit under the leadership of the current Manager, Ron Mercier, and present staff will be retained.
With board approval pending, the settlement is expected to be completed by early June.
ENDS
Company Background
About Cadmus
Cadmus Technology Limited is an end-to-end payment solution and data management services provider. It operates a number of unique interfaces into the NZ EFTPOS infrastructure enabling the capture and processing of information relating to customer spend, as well as the processing of in-house and private label cards.
Clients include the Vodafone Warriors Rugby League, Bartercard, Stihl, TrustPower, and many of the major motor vehicle importers and distributors.
Cadmus has a 50% interest in PosPower Limited, via a joint venture agreement with TrustPower, a 50% interest in a joint venture with E-Smart Card Technologies Limited and a 4.55% strategic shareholding in Insight Technologies (Asia Pacific) Pty Limited.
For more information, please visit www.cadmus.co.nz

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