Euronet acquires Instreamline S.A. in Greece
LEAWOOD, KANSAS-October 11, 2005-Euronet Worldwide's (Nasdaq: EEFT) Greece subsidiary, Euronet EFT Services Hellas EPE, today announced the recently completed acquisition of Instreamline S.A., a wholly-owned subsidiary of Piraeus Bank, the third largest private bank in Greece. Instreamline S.A. provides credit card and point-of-sale (POS) outsourcing services in addition to debit card and transaction gateway switching services to Piraeus Bank Group.
As part of Euronet's acquisition terms, Instreamline has signed an exclusive eight-year agreement with Piraeus Bank to provide credit card and POS outsourcing and other value-added services to the Bank in Greece and its affiliates in Albania, Bulgaria, Romania and Serbia. Euronet also acquired Instreamline's shared POS network in Greece and its related host-to-host connections to five prominent banks in that country. Additionally, Euronet will provide ATM outsourcing services for Piraeus Bank's ATMs in the Balkan region. Instreamline utilizes Euronet's integrated software suite to provide its enhanced credit card and POS outsourcing solution.
"Euronet's acquisition of Instreamline S.A. opens up exciting opportunities for us in the growing credit card and POS market. The rationale behind this move is straightforward- Euronet acquired a knowledgeable company providing Western European standard credit card and POS outsourcing services, which complements our current EFT outsourcing offering and enables us to gain a stronger foothold in Greece and the Balkan region with a leading multinational bank," said Daniel R. Henry, Euronet President and COO. "Furthermore, we plan to leverage the combined competencies of both entities across our existing customer base to provide greater value."
According to a Datamonitor report, between 1999-2003 the total European card market grew at an annual average rate of 11.2% and Greece was the fastest growing card market over the same period. Moreover, as discussed in a recent Wall Street Journal article, investments from Western banks into Central and Eastern Europe are fueling growth in credit card accounts and transactions. These macro-economic indicators illustrate the significant and expanding opportunities for Euronet in Central and Eastern Europe. The acquisition of Instreamline enables Euronet to more efficiently pursue these market opportunities by offering existing and prospective multinational banking clients in Greece and across Central and Eastern Europe a full suite of end-to-end outsourcing solutions.
"Having worked closely with Euronet for the past several years, Piraeus Bank recognizes that Euronet is familiar with the EFT outsourcing requirements and standards of a multinational bank. Our decision to sell Instreamline is based on this above factor and the fact that Piraeus Bank must continue to focus on its core business of banking while allowing an industry expert such as Euronet to manage its ATMs, POS and credit card systems," said Mr. Stavros Lekkakos, General Manager, Piraeus Bank. "We are confident that Euronet will manage Piraeus Bank Group's growing ATM and POS networks and credit card portfolio reliably so we can focus on growing our business both in Greece and throughout the region."
Euronet expects Instreamline S.A. in the initial year of acquisition to marginally contribute approximately $0.01 to $0.02 to its fully diluted earnings per share as it integrates the newly acquired business into the EFT Processing segment. This estimate is subject to refinement resulting from purchase price allocation and the related amortization, and it is based on current and projected financial performance of Instreamline S.A., as determined from un-audited seller provided financial information.
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 and Remittance, Inc. The company has processing centers located in the U.S., Europe and Asia, and processes electronic top-up transactions at more than 208,000 point-of-sale terminals across more than 101,000 retailers in Europe, Asia Pacific, Africa, and the U.S. With corporate headquarters in Leawood, Kansas, USA, and 23 offices worldwide, Euronet serves clients in more than 70 countries. Visit the company's web site at www.euronetworldwide.com.
Any statements contained in this news release that concern the company's or management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: technological developments affecting the market for the company's products and services; foreign exchange fluctuations; and changes in laws and regulations affecting the company's business. These risks and other risks are described in the company's periodic filings with the Securities and Exchange Commission, including but not limited to Euronet's Form 10-K for the period ended December 31, 2004 and its Forms 10-Q for the period ended March 31, 2005 and June 30, 2005. Copies of these filings may be obtained by contacting the company or the SEC.