Strategic expansion into new markets in the Middle East and Malaysia
Acquisition to add 71 stores and 17,000 locations to Ria’s global network
LEAWOOD, Kan., June 22, 2015 (GLOBE NEWSWIRE) -- Ria Money Transfer (“Ria”), the third-largest global money transfer company and a subsidiary of Euronet Worldwide, Inc. (Nasdaq:EEFT), today announced it has acquired IME (M) Sdn Bhd (“IME”), a leading Malaysian-based money transfer provider, and certain affiliated companies. The purchase will be funded primarily by cash, with a small amount of Euronet stock.
The acquisition of IME provides Ria with immediate entry into the important Asian and Middle East send markets and will allow Ria to more quickly replicate the success achieved in the U.S. and Europe over the last decade. IME is highly complementary to Ria’s existing network and adds new send markets and payout locations in some of the world’s largest and fastest growing corridors. Ria also brings more money transfer capabilities and distribution to IME and the combined volume of the two businesses provides a more compelling value proposition for new and existing business partners. Ria has a proven track record of gaining market share when entering new markets and the addition of nine new send countries in Asia and the Middle East will complement Ria’s growth.
“IME is a well-known and trusted provider of remittances in the fast-growing Asian money transfer market, with world class service for both send and payout transactions,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. “IME’s current markets account for approximately $115 billion in remittances per year according to the World Bank. IME provides an optimal geographical footprint for Ria to leverage its money transfer network, volumes and management team in order to achieve efficiencies and eliminate the learning curve when entering new markets. I am particularly excited about the combination of IME and Ria as IME has produced double-digit growth rates in the South Asian market consistent with the growth we are seeing across other money transfer markets.”
“Ria is a well-respected leader in the money transfer industry with a commitment to fast, affordable, secure money transfers. Our customers will benefit from Ria’s extensive global network of 246,000 locations. Euronet’s strong balance sheet and the combined team will help accelerate IME’s growth trajectory in the region,” stated Hem Raj Dhakal, the Managing Director of IME Malaysia.
IME's unaudited revenues were approximately $40 million for the 12 months ended March 31, 2015. It will be consolidated into Euronet’s money transfer segment and the acquisition will be accretive to cash earnings per share in the first full year of operation by approximately $0.08 to $0.10 per share.
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, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products.
Euronet's global payment network is extensive - including 20,863 ATMs, approximately 76,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 47 countries; card software solutions; a prepaid processing network of approximately 672,000 POS terminals at approximately 308,000 retailer locations in 34 countries; and a global money transfer network of approximately 246,000 locations serving 138 countries. With corporate headquarters in Leawood, Kansas, USA, and 54 worldwide offices, Euronet serves clients in approximately 165 countries. For more information, please visit the Company's website at www.euronetworldwide.com.
About IME (M) Sdn Bhd
IME (M) Sdn Bhd (IME) is in the business of remittance solutions specializing in the delivery of world class money transfer services to families and friends around the globe. With headquarters in Kuala Lumpur, IME boasts a widespread international presence spanning 25 countries, a network of over 75,000 payout locations worldwide, a highly efficient workforce of more than 500 diverse employees and a strong and loyal customer base.
Ria is a global leader in money remittances and is a recognized benchmark in both quality and service. Ria initiates transfers through a network of sending agents and company-owned stores located throughout North America, Latin America, Europe and Australia as well as online from the United States at www.riamoneytransfer.com. Ria’s current global network spans 138 countries with services in over 246,000 locations. Ria is steadfast in its commitment to customers and remains ingrained within the communities in which they live. For more information visit www.riafinancial.com and www.riamoneytransfer.com
Forward-Looking Statements in this Press Release
Any statements contained in this press release that concern Euronet or its management’s intentions, expectations, or predictions of future performance, including those relating to IME, are forward-looking statements. Euronet’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: Euronet’s ability to successfully integrate IME after the closing; IME’s ability to maintain its growth rates; conditions in world financial markets and general economic conditions, including economic conditions in specific countries or regions; technological developments affecting the market for Euronet's and IME’s products and services; the ability of Euronet and IME to successfully introduce new products and services; foreign currency exchange rate fluctuations; and changes in laws and regulations affecting Euronet's and IME’s business. These risks and other risks are described in Euronet's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC's Edgar website or by contacting Euronet or the SEC. Any forward-looking statements made in this press release speak only as of the date of this press release. Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. Euronet regularly posts important information to the investor relations section of its website.
For further information regarding this release, please contact: Euronet Worldwide, Inc. Stephanie Taylor firstname.lastname@example.org (913) 327-4200