| Tue 24 Nov 2009, 9:05 | | NT1 - Net1 - Announces Acquisition of Medikredit integrated healthcare solutions |
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NT1
NT1
NT1 - Net1 - Announces Acquisition of Medikredit integrated healthcare solutions
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
("Net1" or "the Company")
Net1 Announces Acquisition of MediKredit Integrated Healthcare Solutions
Johannesburg, South Africa (November 24, 2009) - Net 1 UEPS Technologies, Inc.
("Net1" or the "Company") (NASDAQ: UEPS, JSE: NT1) today announced that it has
agreed to acquire 100% of MediKredit Integrated Healthcare Solutions (Pty) Ltd
("MediKredit") for ZAR 74 million (approximately USD 10 million) in cash.
MediKredit is a South African private company that offers transaction
processing, financial and clinical risk management solutions to both funders and
providers of healthcare. The transaction is expected to close in February 2010
when all regulatory approvals have been obtained.
MediKredit will provide Net 1 the opportunity to expand Net1`s technology to
another adjacent market and to cross-sell its payment technologies. Management
believes that the acquisition is strategically important for the following
reasons:
- MediKredit expands Net1`s position as the leading independent transaction
processor in South Africa. Net1`s market leadership in the merchant processing
space (through EasyPay) in South Africa will be complemented by the acquisition
of the South African market leader in the healthcare transaction processing
space. Management believes that the South African government`s stated intention
to implement a national health insurance program will create significant
opportunities going forward for MediKredit and Net1. MediKredit has 165
employees and provides its services to approximately 5,000 health care providers
in South Africa (90% of total market size), 90 healthcare plans (60% of total
market size), 12 healthcare administrators (65% of total market size) and
processed 60 million transactions during 2008. MediKredit also owns a globally
unique national coding system for all pharmaceutical, surgical and healthcare
consumable products, the National Pharmaceutical Product Index ("NAPPI") product
suite, which has become the national electronic standard for the transfer of
information throughout the healthcare delivery chain in South Africa.
- The acquisition will expand Net1`s offering in some of its existing markets
like Ghana and Nigeria, where national health insurance schemes have been
introduced and where the UEPS platform and installed card base could offer a
complete national solution when combined with the MediKredit system.
- MediKredit offers Net1 a small, strategic entry point for the US healthcare
administration market. The rapidly changing US healthcare and administration
industry provides a significant opportunity for the introduction of MediKredit`s
technology. MediKredit`s wholly owned subsidiary in the USA, XeoHealth
Corporation, recently launched its proven Real Time Adjudication rules engine
for the health care industry in the USA.
- Enhancement of Net1`s technology platforms and IT development resources. Net1
and MediKredit both operate similar back-end systems, which require skilled
developers and technicians. The addition of MediKredit would significantly
broaden Net1`s base of qualified development employees.
- Increase in the depth and diversity of the Net1 management team with the
addition of experienced executives. The MediKredit management team has
significant experience in the healthcare industry, which has always been a key
focus area and potential market entry point for Net1.
"We are delighted to welcome MediKredit to the Net1 family as it presents us
with the ideal platform to expand our transaction processing capabilities and
provide an entry point for our technology in the rapidly growing global health
care market," said Dr. Serge Belamant, Net1`s Chairman and Chief Executive
Officer. "We can now provide a turnkey solution to healthcare providers, funders
and governments that encompasses transaction processing, rule administration and
payment for their members and citizens. We look forward to the contribution of
the highly respected MediKredit management team to the growth of our business."
Wimpie du Plessis, CEO of MediKredit, commented: "The synergies to be derived
from combining Net1`s payments processing expertise with MediKredit`s claims
management solutions should lead to exciting innovation possibilities within the
South African healthcare environment. Furthermore, being part of a NASDAQ listed
company will provide XeoHealth Corporation with a significant platform to make
available our innovative claims adjudication solutions for the US healthcare
market and the other international markets that Net1 currently operates in."
About Net1 (www.net1.com)
Net1 provides its universal electronic payment system, or UEPS, as an
alternative payment system for the unbanked and under-banked populations of
developing economies. The company believes that it is the first company
worldwide to implement a system that can enable the estimated four billion
people who generally have limited or no access to a bank account to enter
affordably into electronic transactions with each other, government agencies,
employers, merchants and other financial service providers. To accomplish this,
Net1 has developed and deployed the UEPS. This system uses secure smart cards
that operate in real-time but offline, unlike traditional payment systems
offered by major banking institutions that require immediate access through a
communications network to a centralized computer. This offline capability means
that users of Net1`s system can enter into transactions at any time with other
cardholders in even the most remote areas so long as a portable offline smart
card reader is available. In addition to payments and purchases, Net1`s system
can be used for banking, health care management, international money transfers,
voting and identification.
Net1 also focuses on the development and provision of secure transaction
technology, solutions and services. Its core competencies around secure online
transaction processing, cryptography and integrated circuit card (chip/smart
card) technologies are principally applied to electronic commerce transactions
in the telecommunications, banking, retail, petroleum and utilities market
sectors. These technologies form the cornerstones of the "trusted transactions"
environment of Prism, a South African based subsidiary of the company, and
provide the Company with the building blocks for developing secure end-to-end
payment solutions.
About MediKredit (www.medikredit.co.za)
MediKredit is a privately held South African information technology company
based in Johannesburg. The company established its footprint in healthcare as
far back as 1941 and is one of the pioneers that changed the face of healthcare
claims processing by moving from a paper-based environment to EDI, where medical
claims are received electronically in a real-time environment. MediKredit has
developed and commercialized a suite of software applications and processing
services that enable on-line real-time claims adjudication and processing of
medical claims for healthcare plans.
Private healthcare in South Africa is moving towards the empowerment of patients
by enabling them to take ownership of the financial and clinical management of
their healthcare plans. This has necessitated the need for the implementation of
managed healthcare principles, medical savings accounts and member co-payments,
where appropriate. MediKredit is uniquely positioned to take advantage of this
significant shift in the provision of healthcare by providing on-line real-time
processing and automated claims adjudication processes.
MediKredit offers financial and clinical risk management solutions to both
healthcare plans and providers. On-line real-time adjudication of medical claims
allows patients and healthcare providers to have immediate and accurate
information on the financial and clinical impacts of, and payment
responsibilities, for healthcare services and products. The company`s
copyrighted software allows for real-time claim adjudication involving the
submission of an EDI claim and receipt of a response with the adjudication
details within seconds. The MediKredit system allows for real-time messaging
with an immediate response to an enquiry within a single, synchronous
communication session.
The MediKredit System is compatible with any system and protocol and is able to
receive and exchange data with most operating systems. MediKredit is able to
manage transactions from all healthcare providers ensuring consistent
application of health care plan rules and benefits
MediKredit`s internally developed intellectual property is centered on unique
processes and expertise in real-time claims adjudication and processing, which
have been developed and utilized in real-time environments for over 10 years.
These processes are also backed by a set of international quality management
system standards and guidelines (ISO 9001:2000).
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and
unknown risks and uncertainties. A discussion of various factors that could
cause the Company`s actual results, levels of activity, performance or
achievements to differ materially from those expressed in such forward-looking
statements are included in the Company`s filings with the Securities and
Exchange Commission. The Company undertakes no obligation to revise any of these
statements to reflect future circumstances or the occurrence of unanticipated
events.
Contact Dhruv Chopra at Net1 Investor Relations at:
Telephone: +1-212-626-6675
Email: dchopra@net1.com
Johannesburg
24 November 2009
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 24/11/2009 09:05:03 Produced by the JSE SENS Department.
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