TORONTO, Oct. 23, 2014 /CNW/ - Posera-HDX Ltd. (TSX - "HDX") announced today that it has reached an agreement with Casio America, Inc. ("Casio") of Dover, New Jersey to distribute point-of-sale ("POS") terminals and cash registers throughout North America.
Founded in 1946, Casio began North American operations in 1967, and released its first electronic cash register in 1976. Today Casio's extensive product line includes "all-in-one" Android-based POS terminals designed specifically for secure retail and hospitality industries. Casio also offers entry level cash registers and mid-range cash registers with payment processing and loyalty solution integration capabilities.
HDX has been a Master Distributor of cash registers and POS terminals to Canadian Resellers since April 1995 and has distributed tens of thousands of units to over sixty resellers in Canada. HDX has historically acquired Japanese manufactured terminals inside Canada at a cost disadvantage to US counterparts. The Casio partnership provides HDX with a broader product line and allows HDX to acquire terminals at US rates and distribute them throughout the United States and Canada. HDX has over forty resellers throughout the US that it has previously been unable to supply with cash registers due to the cross border contract restraints with a previous manufacturer who has exited the cash register market. HDX will also distribute Casio terminals direct to end users from its corporate US offices through a direct sales team.
HDX will combine its software solutions with the Casio hardware suite to offer merchants best-in-breed POS and payment solutions in time for the upcoming United States Merchant Liability Shift for EMV Chip and PIN slated for October 2015. HDX has developed and deployed EMV Chip and PIN enabled solutions at thousands of merchant locations throughout Europe and Canada over many years and is well prepared to scale the combined organization for the coming opportunity in the USA.
Paul Howell, CEO of HDX commented "Casio is a well-respected, high quality manufacturer of POS equipment with a proven track record for innovation and an enormous base of deployed terminals. Our sales agents and reseller partners throughout North America are in need of a more complete product offering and this agreement will provide our associates with the necessary tools to grow our business. The partnership with Casio is an important strategic development for our company to provide entry level, secure POS solutions combined with integrated payment solutions and enterprise management solutions to new and existing merchants throughout North America."
HDX has demonstrated a clear strategy toward building its US operations and has successfully acquired and integrated seven businesses between 2007 and 2013. Merger and acquisition activity for 2014 has been especially aggressive in advance of the United States Merchant Liability Shift for EMV Chip and PIN slated for October 2015.
On June 18th 2014, HDX announced a letter of intent to acquire Terminal Management Concepts Ltd., a Markham, Ontario based Payments Software Developer specializing in EMV Chip and PIN pay-at-the-table wireless solutions with integrations to multiple POS software solutions that are deployed throughout the USA and Canada.
On October 1st 2014, HDX announced a letter of intent to acquire the Chicago area company Premier Payment Systems Inc. Founded in 2010, Premier Payment Systems Inc. provides payment processing solutions for debit and credit transactions to clients throughout the United States. Premier has established its own Bank Identification Number ("BIN"), maintains multiple front-end authorization network agreements, holds its payment processing agreements directly with its merchants, performs its own ongoing risk monitoring and underwriting, and has the ability to transfer its merchant processing base from one back-end settlement network and Sponsor Bank to another if necessary.
In December 2013, HDX acquired payments processing company Zomaron Merchant Services ("Zomaron") of London Ontario. Since September 2013, Zomaron has grown its merchant client base by 43% and the average monthly processing volume per merchant has increased from approximately $18,126 to $20,988.
The completion of any transaction as contemplated by the above noted Letters of Intent are subject to several conditions, including the completion of all necessary legal, financial and technical due diligence reviews, the entering into a definitive agreement between the parties and receipt of all necessary consents and approvals, including board and regulatory approvals.
About the Company
HDX is in the business of managing merchant transactions with consumers and facilitating payment. The company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. HDX also provides system hardware integration services, merchant staff training, system installation services, and POS software and hardware support services.
HDX leading edge technology also includes prepaid stored value payments solutions, customer self-serve kiosks and "line buster" mobile POS terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.
HDX develops, deploys, and supports a restaurant POS software known as "Maître 'D" which has been deployed in over 20,000 locations worldwide in eight different languages. The Company sells and services its clients directly, as well as through a network of approximately 99 value added reseller partners in 25 countries with approximately 550 reseller representatives selling, supporting & installing its software. HDX has offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.
This discussion includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect HDX's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form to be filed on March 27th 2014 with the regulatory authorities. HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
For further information: Paul K. Howell, Chief Executive Officer, Posera-HDX Ltd., 350 Bay Street, Suite 700, Toronto, Ontario M5H 2S6, (416) 703-6462 ext. 2263