Euronet acquires Brodos SRL, a leading prepaid service provider in Romania
BUCHAREST, ROMANIA AND LEAWOOD, KANSAS – February 12, 2007 – Euronet Worldwide Inc. ("Euronet" or the "Company") (NASDAQ: EEFT), a leading electronic payments provider, today announced the recently completed acquisition of 100% of the shares of Brodos SRL, a subsidiary of Brodos AG, a privately-held German company providing retail and electronic distribution services to the mobile telephone industry. Brodos SRL ("Brodos Romania") is a leading electronic prepaid mobile airtime processor in Romania. The acquisition of Brodos Romania marks the entry of Euronet into the Romanian prepaid market, which is Euronet's 12th prepaid market.
Established in 2001, Brodos Romania specializes in processing electronic purchases of prepaid mobile phone airtime primarily on point-of-sale (POS) terminals. Brodos Romania also offers electronic recharge or top-up services for mobile airtime through ATMs, PC and electronic cash register systems. The company currently supports top-up purchases at more than 14,000 POS terminals in Romania. In addition to prepaid mobile top-up, Brodos Romania also offers prepaid long distance calling cards and internet services cards.
Brodos Romania has multi-year processing agreements with Vodafone S.A. and Orange S.A., the two largest mobile operators in the market. Additionally, Brodos Romania has direct relationships with the country's leading distributors of prepaid mobile airtime, as well as major retailers and petrol station chains.
"As the world's largest transaction processor for prepaid mobile airtime, our proven POS prepaid technology and product offerings are unparalleled in the industry. Brodos Romania enables us to enter the emerging Romanian prepaid market with an established presence. We plan to leverage Brodos' network to offer additional prepaid products to retail customers in Romania and expand their revenue streams," said Michael J. Brown, Euronet Worldwide chairman, CEO and president. "Our expertise in prepaid processing including our international best practices will enable us to further expand our prepaid business in Romania."
Euronet has consolidated Brodos Romania's processing platform including all customer connections and point-of-sale (POS) network into Transact, the Company's German prepaid business. The Company expects the full year financial impacts of the acquisition of Brodos Romania to be slightly accretive to Euronet's 2007 results.
In markets like Romania, top-up or recharge growth comes frm an increase in prepaid users, from the mobile operators' shift from scratch-off cards to electronic distribution and from the addition of new retailers and POS devices. Currently, the Company estimates indicate approximately 70 percent of Romania's 22 million population to have mobile phones, of which, more than 60 percent represent prepaid accounts. The increase in mobile phone subscribers in the market continues to fuel prepaid user growth.
About Euronet Worldwide
Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers outsourcing and consulting services, integrated EFT software, network gateways, electronic prepaid top-up services to financial institutions, mobile operators and retailers, as well as electronic consumer money transfer and bill payment services. Euronet operates and services the largest pan-European group of ATMs and operates the largest Indian shared ATM network. Euronet is also one of the largest providers of prepaid processing, or top-up services, for prepaid mobile airtime. The Company is a licensed electronic money transmitter and bill payment company via Euronet Payments & Remittance, Inc. The Company has processing centers located in the U.S., Europe and Asia, and processes electronic top-up transactions at more than 265,000 point-of-sale terminals across approximately 157,000 retailers in Europe, Asia Pacific, Africa and the U.S. With corporate headquarters in Leawood, Kansas, USA, and 26 worldwide offices, Euronet serves clients in more than 80 countries. Visit the Company's web site at www.euronetworldwide.com.
Shruthi Fielder (formerly Dyapaiah)
Euronet Worldwide, Inc.