View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
March 22, 2005

Euronet completes acquisition of three new prepaid companies

Electronic payments provider Euronet has completed its assets purchase of Telerecarga, a Spanish provider of pre-paid top-up services, and Dynamic Telecom, a pre-paid service provider in the US. The company has also increased its ownership of UK-based ATX Software from 10% to 51%, by acquiring an additional 41% of its shares.

By CBR Staff Writer

Telerecarga specializes in the electronic distribution of prepaid wireless airtime and other prepaid products through point-of-sale terminals in Spain. Euronet said the acquisition is valued at 38m euros at the close of the transaction, with the company expected to pay a remaining 15m euros at the start of May.

Euronet has also acquired substantially all of the assets of Dynamic Telecom, a prepaid services vendor which specializes in wireless top-up, long distance calling cards and financial services products via point-of-sale terminals in convenience store retail chains across the US. Its assets were purchased on an earn-out basis, which will be calculated based on certain 2005 performance criteria, currently estimated to be between $7m and $10m.

In a transaction closed in May 2004, Euronet purchased 10% of ATX Software, a UK-based provider of electronic prepaid voucher products. According to the announcement, Euronet has now exercised its option to purchase an additional 41% of the shares of ATX for 8m euros.

We are capitalizing on the growing prepaid market, and our acquisitions in the prepaid sector allow us to significantly expand our presence in some of the leading and emerging electronic top-up markets in the US and Europe, said Michael Brown, Euronet CEO.

The acquisitions of Telerecarga, ATX and Dynamic Telecom enable us to leverage the combined expertise of these established companies in their respective regions and reinforce our position as the largest multinational provider of prepaid processing, or top-up services, for prepaid mobile airtime, he noted.

The company added that it expects the acquisitions to contribute approximately $0.01 to $0.02 incremental per quarter to its fully diluted earnings per share, beginning in the second quarter 2005.

Content from our partners
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
When it comes to AI, remember not every problem is a nail

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.