Euronets PaySpot subsidiary acquires Precept to build U.S. top-up business

Monday 5 January 2004 18:21 CET | News

PaySpot has acquired 100% of the shares of Prepaid Concepts, Inc. (Precept), a California corporation, which sells prepaid services via point-of-sale (POS) terminals in the U.S.

Precept, which was founded in 2002 in Orange County, California, is one of the fastest growing prepaid service providers in the U.S. and was named as one of the Ten Companies to Watch in 2004 in the January 2004 issue of Intele-Card News. Precept provides several types of prepaid products, with a strong presence in the independent wireless stores and check cashing retail channels. Precept distributes prepaid services through a network of approximately 4,500 retail locations, all of which have electronic distribution of prepaid services via POS terminals. Precept distributes prepaid products for all the major U.S. wireless carriers, including ALLTEL, AT&T Wireless, Cingular, T-Mobile, Tracfone and Verizon Wireless, as well as several regional carriers. Precept also provides electronic recharge services for three current Boost Mobile master agents and anticipates further strengthening of its Boost relationship through PaySpots ability to support the national rollout of Boost Mobile. The shares of Precept were purchased with a combination of cash, debt and Euronet stock. Euronet expects that Precept will contribute approximately $0.03 to $0.05 per share to its fully diluted earnings per share for the year 2004. This estimate is subject to adjustment resulting from purchase price allocation and the related amortization, and it is based on current and projected financial performance of Precept, as determined from unaudited financial information provided in the transaction. PaySpot was launched in 2002 and uses a technology platform that is based on Euronets proprietary technology, which currently processes in excess of 10 million prepaid transactions per month. This prepaid services platform features a state-of-the-art switching engine offering billing, customer service, trouble reporting, credit management, settlement and reconciliation. This system supports online electronic top-up at retail locations via a range of POS terminals or through integrated electronic cash registers for retailers with multiple locations and multiple checkout points.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce