Global Payments Acquires Majority Interest in Czech Republic Processing Company

Friday 19 December 2003 09:31 CET | News

Global Payments has reached an agreement to acquire 52.6 percent of the outstanding shares of MUZO, a.s. from Komercní banka, a.s. (KB) for $34.7 million in cash.

As a condition of the agreement, KB, a key MUZO customer, has agreed to extend its payment services contracts for a three-year period. This transaction is subject to customary regulatory approvals and closing conditions and is expected to be completed during the first calendar quarter of 2004. MUZO is the largest indirect payment processor in the Czech Republic holding an approximate 50 percent market share and processing approximately 62 million ATM transactions and 33 million point of sale (POS) transactions during calendar 2002. As of June 30, 2003, MUZO had 1,212 ATMs and 19,138 merchant POS terminals connected to its authorization system. Additionally, the company had approximately 3.0 million active cards stored in its authorization system database as of June 30, 2003. For the year ending December 31, 2003, MUZO expects total revenue of approximately CZK 767 million per its public releases, or approximately USD $27 million at the average exchange rate thus far during 2003. Over the long term, Global anticipates strong revenue and earnings accretion from MUZO, as the company uses MUZO as a platform to target new customers and new regions throughout Europe. Global plans to update its fiscal 2004 guidance upon the closing of this transaction.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce