TORONTO and EDMONTON, Dec. 8 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX") announced today that it has signed a letter of intent to acquire Cash N Go Ltd. ("Cash N Go") of Edmonton, Alberta. The terms of the transaction were not disclosed.
HDX is listed on the TSX under the symbol HDX.
Cash N Go, established in 1998, operates a network of approximately 1,200 ATM's throughout Canada, dispenses approximately $1 billion in cash annually, and has annual revenue of approximately $13 million. Cash N Go owns and operates a payment switch, processes approximately 8 million transactions annually, and is a member of Interac(TM).
With twenty six employees, Cash N Go focuses its ATM distribution at premium locations throughout Canada. Cash N Go is the primary ATM provider for numerous shopping malls, hotels, casinos, entertainment complexes, and financial institutions.
The combined historical annual revenue of Cash N Go and HDX is approximately $22 million.
"The agreement with Cash N Go is a major development for HDX," says Paul Howell, president and CEO of HDX. "The ability to provide payment processing alternatives and ATM's to our customers will enhance client relationships where we currently provide point of sale solutions, business control systems, business intelligence tools and closed loop consumer payment systems. Ken Nichols and his team have built a profitable company and Cash N Go is a leader in the Canadian ATM industry. Our corporate philosophies towards providing quality products and excellent customer service are closely aligned and the organic growth and cross selling opportunities between our companies are accretive. This transaction also provides HDX with technology and revenue that will facilitate further growth through acquisition."
"This is a timely and strategic move for the Cash N Go team," says Ken Nichols, President of Cash N Go. "While owning our payment switch is an excellent advantage for Cash N Go's ATM network, the switch technology is currently under-utilized. The size and scope of the HDX service network and the features and benefits of the HDX product line will enhance our sales efforts and give us an opportunity to better serve our customer base. The larger combined company provides the extra team resources required to develop advanced technology and the ability to service customers in a wide geographic area."
Ken Nichols will play a major role in the ongoing operations of Cash N Go and HDX.
The parties have agreed to negotiate a definitive agreement exclusively with each other and the transaction is expected to close on March 31st, 2010. The transaction is subject to a number of conditions including HDX shareholder approval, the parties reaching a definitive agreement, and receiving all necessary regulatory approvals.
Hosted Data Transaction Solutions Inc. is in the business of managing merchant transactions with consumers and facilitating payment. HDX develops and deploys touch screen POS (point of sale) 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 post sale software and hardware support services.
HDX's leading edge technology also includes customer self serve kiosks and "line buster" mobile point of sale 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 pioneered an "instead of cash"(R) electronic based payment facilitation service. The Dexit(R) Service can be private branded for a specific merchant and enables customers to pay for items quickly and conveniently with the tap of a RFID (radio frequency identification) tag linked to a pre-paid account. This Dexit Service payment solution is especially well suited for corporate and institutional cafeteria environments where hundreds of customers purchase and pay for meals in compressed periods throughout the business day.
(R) Registered trade-mark of Hosted Data Transaction Solutions Inc.
To find out more about Hosted Data Transaction Solutions Inc., visit our website at www.HDXsolutions.com and www.dexit.com.
To find out more about Cash N Go, visit www.cashngo.com
SOURCE HOSTED DATA TRANSACTION SOLUTIONS INC.
For further information: For further information: Paul Howell, President/CEO, Hosted Data Transaction Solutions Inc., Phone: (416) 703-6462, extension 2263, Email: Paul.email@example.com