8th Jan 2013. Euronet Worldwide, Inc. (Nasdaq:EEFT), a leading global electronic payments provider and distributor, today announced the acquisition of Pure Commerce, a fast-growing provider of cloud-based financial and payment solutions to banks, acquirers and global retailers around the world. Terms have not been disclosed.
Pure Commerce is head quartered in Sydney, Australia, and provides a range of currency conversion payment and multi-currency acquiring services for point-of-sale terminals, online applications and ATMs in high foreign card volume locations primarily across Asia Pacific and Europe. The Pure Commerce management team produced approximately $15 million in revenue for 2012 which has grown at a compounded annual rate of approximately 30% over the last three years.
This acquisition allows Euronet to offer industry leading currency conversion and multi-currency acquiring products to global, local and online merchant acquirers, banks and retailers, and also extends Euronet’s operating markets. Pure Commerce has developed patented, best-in-class point-of-sale processes and displays that provide consumers with more convenient, transparent transactions. Its product portfolio also increases retailer earnings potential through multi-currency sales capabilities for both over-the-counter and online sales. Pure Commerce customers include leading international banks, merchant acquirers and global merchants. Certain of these global merchants specialize in retail sales in duty free shops, offering brands such as Louis Vuitton, Prada, Hugo Boss and Chanel, among many others.
According to the most recent reported year ending December 2011, Euronet generated revenue of approximately $1.2 billion and processed approximately two billion transactions across its ATM, prepaid and money transfer networks for more than 190 financial institutions, 200 mobile operators, approximately 449,000 retailer and agent locations and millions of individual consumers worldwide.
Michael J. Brown, Chairman and Chief Executive Officer of Euronet Worldwide, said the acquisition of Pure Commerce allowed Euronet to offer “industry leading currency conversion payment and multi-currency acquiring services to global, local and online banks, acquirers and retailers, with synergies for Pure Commerce’s payment services in all three of its business lines.”
“Pure Commerce’s cloud-based services allow banks and financial institutions to significantly reduce costs, while delivering new products in record time. With offices in Sydney, Auckland, Seoul and Singapore, Pure Commerce’s strengths in Asia Pacific will further grow Euronet’s business throughout the region.”
Pure Commerce’s management team brings significant experience in the rapidly growing cloud-based on-demand financial payment and solutions market, and will continue to be managed by current CEO, Daniel Lavecky, who said ““The combination of our expertise in delivering cloud-based financial technologies and Euronet’s extensive global reach allows us to rapidly and reliably expand our business. Euronet’s significant global payment network offers us a greater platform to service our customers. We will continue to operate as usual moving forward, providing our customers with the same local expertise and support, but now with the support of a multi-billion dollar company.”
Jefferies & Co. served as an advisor to Pure Commerce on the transaction.
Euronet expects the acquisition to contribute approximately three to four cents to Euronet’s annual cash earnings per share in 2013.
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.
Euronet’s global payment network is extensive – including 17,370 ATMs, approximately 69,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 36 countries; card software solutions; a prepaid processing network of approximately 631,000 POS terminals at approximately 304,000 retailer locations in 29 countries; and a consumer-to-consumer money transfer network of approximately 170,000 locations serving 133 countries. With corporate headquarters in Leawood, Kansas, USA, and 47 worldwide offices, Euronet serves clients in approximately 150 countries. For more information, please visit the Company’s website at www.euronetworldwide.com.
About Pure Commerce
Pure Commerce provides on-demand financial and payment solutions to banks, acquirers and multi-national corporates. Established in 1997, Pure Commerce has a proven track record of successfully developing and deploying many innovative payment solutions across the globe. The company’s payment solutions provide clients with innovative ways to extend, deepen and retain relationships with their customers. Pure Commerce serves customers in Australia, New Zealand, Singapore, Korea, Philippines, Germany, Austria, France, Switzerland and Sweden.