ASX listed ATM machine operator Stargroup, has officially doubled in size after completing a quality acquisition of a competitor’s 104 machine ATM network operating in most Australian states.
At yesterday’s Stargroup AGM, shareholders overwhelmingly elected to ratify the deal with Cash Plus Australia Pty Ltd that will see the owners of Cash Plus paid $6.3m for their ATM machine network.
Following on from a successful rights issue, Stargroup paid $3.15m in cash and issued 78 931 125 Stargroup shares at 4c to complete the deal which was above the market closing price yesterday of 3.4c
The company says its annual revenues will more than double as a result of the acquisition from $2.4m to $5m and its annual transactions will move from around 1 million per year to 2 million per year.
Importantly, Stargroup says it will now be cash flow positive as a result of the marriage with Cash Plus which will see the combined entity operate over 230 ATM machines Australia wide.
Experienced ATM operator and previous Cash Plus owner David Dickinson will also join the Stargroup board post the acquisition.
Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “Stargroup is excited to make this EPS accretive acquisition in its ATM division and have Mr David Dickinson become a member of the Board.
Mr Dickinson is an experienced ATM entrepreneur who has built significant ATM networks in both Australia and New Zealand and this is part of our commitment to becoming the largest ASX-listed ATM and payment services provider in Australia.
Stargroup and Cash Plus are aligned in our thinking in so much as we both take a highly disciplined approach to site selection.
We choose only quality sites that can offer good ROI’s on capital and this high quality ATM network increases our national footprint and is one that will bring significant benefits to our shareholders. “ said Mr Zani
