| Tue 2 Nov 2010, 8:36 | | NT1 - Net1 - Net1 Completes Acquisition of KSNET Inc. |
|
NT1
NT1
NT1 - Net1 - Net1 Completes Acquisition of KSNET, Inc.
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 Completes Acquisition of KSNET, Inc.
Transaction Expands Net1`s International Footprint, Diversifies Revenue and is
Immediately Accretive to Fundamental Earnings
Johannesburg, November 2, 2010 - Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS,
JSE: NT1) ("Net1" or the "Company") today announced that effective October 29,
2010, it has completed its acquisition of 98.73% of KSNET, Inc. in the Republic
of Korea ("Korea") for 270 billion Korean Won ("KRW"), or approximately $240
million based on the exchange rates on October 29, 2010. The transaction was
funded partly through a five-year facility with a consortium of Korean banks led
by Hana Bank in the amount of KRW 130.5 billion, and the balance from the
Company`s available cash reserves. The transaction is expected to be immediately
accretive to fundamental earnings (which is a non-GAAP measure).
The acquisition of KSNET expands Net1`s international footprint as well as
diversifies the Company`s revenue, earnings and product portfolio. The
combination is expected to capitalize on multiple revenue synergies and provide
an established base in Asia for further business development activities in the
region.
Net1 management will discuss the transaction in more detail when it hosts its
first quarter fiscal 2011 earnings call at 8am ET on November 10, 2010.
About KSNet
KSNet services a broad range of industries in Korea, including credit card,
retail and wholesale merchant, financial institutions, governmental
organizations, utility companies and e-commerce businesses. It offers payment
processing solutions including payment card and banking value added networks,
payment gateways, cash receipt, purchase cards and point cards. It has a diverse
merchant base and processed over 1.4 billion transactions in 2009.
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. Our market-leading system enables 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. Our
universal electronic payment system, or UEPS, uses 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
the Net1 system can enter into transactions at any time with other card holders
even in the most remote areas so long as a portable offline smart card reader is
available. In addition to payments and purchases, UEPS can be used for banking,
healthcare management, international money transfers, voting and identification.
Net1 also focuses on the development and provision of secure transaction
technology, solutions and services and offers transaction processing, financial
and clinical risk management solutions to both funders and providers of
healthcare. Its core competencies around secure online transaction processing,
cryptography and integrated circuit card (chip/smartcard) technologies are
principally applied to electronic commerce transactions in the
telecommunications, banking, retail, petroleum and utilities market sectors.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE
Limited.
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial
risks and uncertainties. All statements, other than statements of historical
fact, included in this press release regarding strategy, future operations,
future financial position, future revenues, projected costs, prospects, plans
and objectives of management are forward-looking statements. The Company may not
actually achieve the plans, intentions or expectations disclosed in its forward-
looking statements. Actual results or events could differ materially from the
plans, intentions and expectations disclosed in the forward-looking statements
that the Company makes. Factors that might cause such differences include, but
are not limited to: the risk that the Company`s business and the KSNet business
will not be integrated successfully; the possibility that the expected synergies
from the acquisition will not be realized, or will not be realized within the
expected time period; disruption from the acquisition making it more difficult
to maintain business and operational relationships; and other factors, many of
which are beyond the Company`s control; and other important factors included in
the Company`s reports filed with the Securities and Exchange Commission,
particularly in the "Risk Factors" section of the Company`s Annual Report on
Form 10-K for the fiscal year ended June 30, 2010, as such Risk Factors may be
updated from time to time in subsequent reports. The Company does not assume any
obligation to update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Relations Contact:
Dhruv Chopra
Vice President of Investor Relations
Phone: +1-212-626-6675
Email: dchopra@net1.com
Johannesburg
2 November 2010
Sponsor:
Deutsche Securities (SA) (Proprietary) Limited
Date: 02/11/2010 08:36:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
