DirectCash Payments has agreed to purchase DirectCash Bank, a Canadian chartered bank, through the acquisition of all of the issued and outstanding shares of the bank’s sole shareholder, 6676405 Canada, in a transaction valued at approximately $15m.
Under the terms of the agreement, DirectCash Payments will issue 1,077,989 common shares to the shareholders of 6676405, subject to adjustment on account of a minimum net asset value of the bank as at closing.
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The transaction is expected to conclude during the second half of 2014, after receiving approvals from Minister of Finance (Canada) and the Toronto Stock Exchange as well as satisfying other customary closing conditions.
The acquisition of the bank, which is a principal member of Visa, Mastercard and Interac, will boost the marketing flexibility of DirectCash Payments and better enable it to take advantage of opportunities in the industry.
DirectCash Payments is one of the largest branded ATM provider in Canada and Australia, and the third largest branded ATM provider in the UK.
Besides offering ATM services in Mexico and New Zealand, the company offers credit union and other financial institution processing and outsourcing, branded non-financial institution debit terminals and pre-paid card products in Canada.
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