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Optimal Acquires Portfolio of Merchant Processing

Monday 9 May 2005 00:05 CET | News

Optimal Payments, a wholly-owned subsidiary of Optimal Group, has acquired from United Bank Card, (UBC) a portfolio of merchant processing for cash consideration of $44 million.

Optimal Group also provided an update regarding the proposed flotation of FireOne Group (FireOne). All references are to U.S. dollars. Acquisiton of Portfolio UBC is a New Jersey-based payment and transaction processor that serves primarily card-present merchants nationwide. The acquired portfolio represents approximately 15,500 merchant locations that generate in excess of $1.5 billion in annual credit and debit card processing volume. Optimal anticipates that this acquisition will contribute in excess of $9.8 million in annual underlying earnings from continuing operations before income taxes. As a result of this acquisition Optimal Group now anticipates underlying earnings from continuing operations before income taxes for the second quarter ending June 30, 2005 to be approximately $7.05 million. Optimal’s previous guidance for underlying earnings from continuing operations before income taxes for the second quarter was $5.4 million. Underlying earnings from continuing operations before income taxes is a non-GAAP (Generally Accepted Accounting Principles) financial measure that excludes amortization of intangibles, amortization of property and equipment, inventory write-downs, stock-based compensation, restructuring costs, foreign exchange, income taxes and discontinued operations. Optimal believes that underlying earnings from continuing operations before income taxes is useful to investors as a measure of Optimals earnings because it is an important measure of the Companys growth and performance, and provides a meaningful reflection of underlying trends of its business.


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

Payments & Commerce