September 20, 2011 04:00 PM Eastern Daylight Time
LEAWOOD, Kan.--(BUSINESS WIRE)--Euronet Worldwide, Inc. (Nasdaq: EEFT), a leading global electronic payments provider and distributor, announces the completion of the acquisition of cadooz Holding GmbH (“cadooz”), a leading German incentive company, from Palamon Capital Partners, one of Europe’s leading mid-market private equity firms. The acquisition was completed using cash from existing reserves. cadooz, headquartered in Hamburg, is Germany's largest full-service provider of vouchers, innovative merchandise and incentive solutions, serving more than 3,000 corporate customers across a range of industries in Germany, Austria and Poland, generating estimated annual revenue of approximately €80 million based on the face value of products sold. The Company offers a broad range of incentives, including multi-choice gift vouchers and cards that can be redeemed through retailers, online stores or mobile phone applications.
“We are looking forward to expanding our supply of products to new markets with the support of Euronet”
“cadooz is a fast growing promotions business, and epay’s strong retail relationships in Germany will help sustain and accelerate that growth,” said Kevin Caponecchi, President of Euronet Worldwide. “In addition, cadooz complements our core mobile top-up, prepaid and electronic payments business, giving us the opportunity to sell cadooz vouchers, rewards and incentive products to our merchants and retail partners.”
cadooz’ management team brings a significant depth of experience in the rewards business, as well as strength in voucher rewards program management. cadooz will continue to be managed by Florian Welsch, current CEO of cadooz. The cadooz management team is on track to achieve organic compounded annual revenue growth in excess of 30% over the last three years through the development of creative incentive awards that have led to remarkable product promotions and sales incentives.
"We are looking forward to expanding our supply of products to new markets with the support of Euronet," says Florian Welsch. "We will be strenghtening our position as an innovative and reliable supplier of marketing and incentive concepts for our impressive portfolio of customers."
Euronet expects the acquisition to deliver immediate and long-term value for shareholders. Specifically, Euronet believes that the transaction will:
- Allow epay, Euronet’s prepaid payment segment, to expand sales of existing and future digital content through the 3,000 corporate cadooz customers
- Expand cadooz’ opportunities in Austria and Poland through Euronet’s retail and bank customers
- Leverage cadooz’ marketing and promotional capabilities through Euronet’s EFT, epay and Money Transfer segments
- Deliver significant operational and process synergies
- Contribute approximately 3 to 4 cents to Euronet’s annual cash earnings per share in its first full year of operations.
About epay
epay, a Division of Euronet Worldwide, Inc. (NASDAQ: EEFT), is a global processor and distributor of electronic payment solutions – enabling service providers to maximize the sales of their products and services. epay delivers innovative and tailored electronic payment, cash collection solutions including POS systems integration, a full settlement and reporting service and full marketing and distribution service support. The epay product portfolio includes prepaid mobile top-up, prepaid debit cards, e-wallets, bill payment, gift cards, digital music and other content, money transfer through its sister company RIA, lottery and transport payment solutions including road tolls and public transport. epay delivers these products through a worldwide network of approximately 276,000 retailer locations and 588,000 points of sale (POS) across a number of markets including Australia, Austria, Brazil, France, Germany, India, Ireland, Italy, New Zealand, Poland, Romania, Spain, Switzerland, UK and the US. Visit www.epayworldwide.com for more information.
About Euronet Worldwide, Inc.
Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, consumer money transfer and bill payment services, and electronic distribution for prepaid mobile phone time and other prepaid products. For more information, please visit the Company's website at www.euronetworldwide.com.
About cadooz:
cadooz is a supplier of vouchers and loyalty/reward systems to corporate customers. Through its subsidiaries, the cadooz Group (cadooz AG, yamando GmbH, cadooz rewards GmbH, and cadooz Austria GmbH) sells shopping vouchers and experience gift certificates that allow corporate customers to reward sales performance, improve customer loyalty and recognize the contributions of business partners and employees. cadooz’ approach to vouchers is innovative, with products that are both customizable and broadly redeemable as gifts, unique experiences and rewards. cadooz’ rewards systems serve the gift industry for clients from sectors such as transportation, logistics, financial services, and the automobile industry. For more information, please visit the Company’s website atwww.cadooz.de/en/.
