GTECH Holdings Corporation Acquires BillBird S.A.
September 09 2004 - 9:00AM
PR Newswire (US)
GTECH Holdings Corporation Acquires BillBird S.A. Acquisition of
Leader in Electronic Bill Payment Services in Poland Furthers
GTECH's Commercial Services Strategy WEST GREENWICH, R.I., Sept. 9
/PRNewswire-FirstCall/ -- GTECH Holdings Corporation (NYSE:GTK)
today announced that its majority-owned subsidiary, PolCard S.A.,
has completed the acquisition of privately-held BillBird S.A., the
leading provider of electronic bill payment services in Poland. The
business was acquired from BillBird's existing shareholders, IIF
S.A.; BRE Bank S.A.; and Alcyone Sp. z.o.o., a subsidiary of Ster
Projekt S.A., for a total enterprise purchase price of
approximately US$6 million. "The acquisition of BillBird not only
offers GTECH an opportunity to deliver significant value to our
shareholders, but also provides a strategic complement to our
Commercial Services operations, positioning the Company for further
success in this market," said GTECH President and CEO W. Bruce
Turner. "Led by a solid entrepreneurial team with impressive domain
knowledge, BillBird has secured key processing contracts with
approximately 75 percent of the utility and telecommunications
bar-coded bill issuers in Poland, and has developed strong
relationships with leading retailers across all trade styles,"
continued Mr. Turner. In Poland today, the majority of bill payment
transactions take place at Post Office locations. Electronic bill
payment services offer consumers the convenience of paying bills at
a network of retail locations they frequent on a regular basis for
other needs, and streamlines bill collections and cash management
for the utility customers. Through its PolCard subsidiary, GTECH
currently has approximately 2,500 retail locations offering prepaid
mobile services under the VIA(TM) brand [GTECH-owned commercial
services brand], and within these locations, there are currently
more than 700 locations also offering electronic bill payment
services. PolCard, overall, has a nationwide retail network of
34,000 points-of-access across Poland, making it the leading debit
and credit card merchant transaction acquirer and processor company
in the country. "With over 2,000 -- and growing -- points-of-access
in large grocery stores, convenience stores, and gasoline stations,
BillBird will dramatically increase GTECH's Commercial Services
market presence in Poland, as well as the number of transactions
processed and the resulting revenue," said BillBird President and
CEO Rafal Styczen. Combining BillBird and PolCard enhances GTECH's
market strategy of providing a full product suite including debit
and credit transaction processing, card and ATM management
services, electronic bill payments, and prepaid mobile phone
top-ups. Possessing a credible offering in all of these services
will allow GTECH to become a Commercial Services market leader in
one of the most significant markets in Central and Eastern Europe.
"BillBird's network is built on forward-thinking technology," said
Mr. Turner. "Their technology solution encompasses broad system and
back-office functionality, as well as comprehensive reporting and
business intelligence functions. This effective solution will
likely offer a point of leverage in future targeted markets, in
addition to Poland." Established in 2000, BillBird will operate as
a subsidiary of PolCard and maintain its office in Krakow, Poland.
GTECH expects the acquisition of BillBird to be earnings per share
neutral in its fiscal year 2005. Certain statements contained in
this press release are forward looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. The Company identifies
forward looking statements by words such as "may," "will,"
"should," "could," "expect," "plan," "anticipate," "intend,"
"believe," "estimate," "continue," or similar words that refer to
the future. Such statements include, without limitation, statements
relating to the prospects and financial outlook for the Company,
which reflect management assumptions regarding: (i) the future
prospects for and stability of the lottery industry and other
businesses in which the Company is engaged or expects to be
engaged, (ii) the future operating and financial performance of the
Company (including, without limitation, expected future growth in
revenues, profit margins and earnings per share), and (iii) the
ability of the Company to retain existing business and to obtain
and retain new business. Such forward looking statements reflect
management's assessment based on information currently available,
but are not guarantees and are subject to risks and uncertainties
that could cause actual results to differ materially from those
contemplated in the forward looking statements. These risks and
uncertainties include, but are not limited to, those set forth
above, in the Company's subsequent press releases and on reports by
the Company on Forms 10-K, 10-Q and 8-K, and other reports and
filings with the Securities and Exchange Commission, as well as
risks and uncertainties respecting: (i) the potential impact of
extensive and evolving government regulations upon the Company's
business; (ii) the ability of the Company to continue to retain and
extend its existing contracts and win new contracts; (iii) the
possibility of slower than expected growth or declines in sales of
lottery and gaming goods and services by the Company or the
Company's customers; (iv) exposure to foreign currency
fluctuations; (v) risks and uncertainties inherent in doing
business in foreign jurisdictions; (vi) the relatively large
percentage of the Company's revenues attributable to a relatively
small number of the Company's customers; (vii) the possibility of
significant fluctuation of quarterly operating results; (viii) the
intensity of competition in the lottery and gaming industries; (ix)
the possibility of substantial penalties under and/or termination
of the Company's contracts; (x) the ability of the Company to
respond to technological change and to satisfy the future
technological demands of its customers; (xi) opposition to
expansion of lottery and gaming; (xii) the Company's ability to
attract and retain key employees; and (xiii) the possibility of
adverse determinations in pending legal proceedings. GTECH, a
leading global information technology company with over $1 billion
in revenues and more than 5,500 people in 45 countries, provides
software, networks, and professional services that power
high-performance, transaction processing solutions. The Company's
core market is the lottery industry, with a growing presence in
commercial gaming technology and financial services transaction
processing. For more information about the Company, please visit
GTECH's website at http://www.gtech.com/. Contact: Robert K.
Vincent Public Affairs GTECH Corporation 401-392-7452 DATASOURCE:
GTECH Holdings Corporation CONTACT: Robert K. Vincent, Public
Affairs of GTECH Corporation, +1-401- 392-7452 Web site:
http://www.gtech.com/
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