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Press
Dec 26, 2007
EURONET SENDS LETTER TO MONEYGRAM EXPRESSING DISAPPOINTMENT WITH CONTINUED INSISTENCE ON STANDSTILL RESTRICTION
Leawood, KS, December 26, 2007 – Euronet Worldwide Inc. (Nasdaq: EEFT) today delivered a
letter to the Board of Directors of MoneyGram International, Inc. (NYSE: MGI) expressing its
disappointment that MoneyGram continues to insist that a restrictive “standstill” provision and
other unreasonable conditions be part of a confidentiality agreement with Euronet in connection
with its proposal to acquire MoneyGram. Euronet believes if MoneyGram is sincere in its stated
willingness to meet with Euronet and discuss Euronet’s proposal, MoneyGram should immediately
cease demanding unreasonable conditions in the confidentiality agreement and execute the
agreement proposed by Euronet.
Presented below is the full text of the letter sent to the Board of Directors of MoneyGram:
Philip W. Milne
Chairman of the Board and
Chief Executive Officer
MoneyGram International, Inc.
1550 Utica Avenue South, Suite 100
Minneapolis, MN 55416
Dear Phil,
I read with interest your response on December 21, 2007 to the request from Blum Capital
Partners, L.P. that you remove your demand for a restrictive standstill agreement and enter into
discussions with Euronet Worldwide, Inc., in order to “secure the best possible value for
MoneyGram shareholders.”
I thought it was important to put into context your claim that you “have worked hard to reach a
compromise with Euronet” and to make clear what was omitted from your response - that
MoneyGram continues to insist on a standstill agreement and other unreasonable requirements as a
condition to engaging in discussions with Euronet.
Your letter fails to note that for weeks MoneyGram refused to discuss a business combination with
Euronet on any basis, confidentially or otherwise, stating that MoneyGram was not for sale. I first
attempted to contact you starting in early November, and sent you a proposal for a business
combination on November 8, 2007. The entire text of your response to me in a letter dated
November 16, 2007 was as follows:
I have reviewed your letters with our Board of Directors. The Board has asked me to
inform you that MoneyGram is not for sale and, accordingly, there is no reason for us to
meet to discuss your letters.
It was only on the eve of our taking our proposal directly to the MoneyGram shareholders (almost
five weeks after my first contact to you and one week after telling you in our December 4, 2007
letter that we reserved the right “to discuss our proposal with your shareholders should you persist
in being unwilling to meet with us to discuss it”), that MoneyGram suggested a willingness to
discuss our proposal. Of course that communication was accompanied by a draft confidentiality
agreement with a two-year standstill agreement that would have prevented us from pursuing our
offer, discussing it with MoneyGram shareholders, or running an alternative slate of directors.
Given MoneyGram’s complete refusal to that point to engage in any discussions with us regarding
a proposed business combination, we viewed your proposal to engage in discussions on
unreasonable terms as a continuing refusal to talk to us. We therefore decided to convey the
compelling rationale for the proposed transaction directly to MoneyGram’s shareholders.
Specifically, we believe this transaction would deliver substantial immediate and long-term value
for the shareholders of both companies and would:
• Create a powerful new global player in the money transfer business well positioned to
capture share in a highly fragmented market;
• Expand the geographic reach of both companies and unlock compelling opportunities by
combining Euronet’s and MoneyGram’s complementary distribution networks, corridors
and agent bases;
• Enable the companies to further benefit from the rapid growth of the money transfer market
in key emerging countries, such as China and India; and
• Generate double-digit accretion and deliver significant synergies.
Since that time, you have suggested shortening the length of the standstill and modifying certain
other terms as an effort to “compromise”, but the terms as modified are still unreasonable, since
they would prevent us from pursuing our proposal, discussing it with MoneyGram shareholders, or
running an alternative slate of directors. As stated in Blum Capital’s letter to you, “the onerous
restriction of a standstill agreement is antithetical to the goal of shareholder value maximization
during a proposed negotiation process.”
Finally, you state in your letter that the agreement is needed so that “potential competitive and/or
sensitive information cannot be used to the detriment of MoneyGram . . .” As best I can see, the
provisions you are demanding are designed to prevent use of the information to the detriment of
the self-interest of MoneyGram's management only and certainly do not allow such management
to maximize the value of MoneyGram's shareholders.
If MoneyGram is sincere in its stated willingness to meet with Euronet and discuss our proposal, it
should immediately cease demanding unreasonable conditions in the confidentiality agreement and
execute the agreement proposed by Euronet.
We look forward to hearing from you as soon as possible.
Very Truly Yours,
/s/Michael J. Brown
Michael J. Brown
Chairman and Chief Executive Officer
cc: MoneyGram International Board of Directors
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, mobile
operators and retailers which include comprehensive ATM and POS operation and management
services; credit and debit card outsourcing services; card issuing and merchant acquiring services;
software solutions; consumer money transfer and bill payment services; and electronic distribution
of top-up services for prepaid mobile airtime and other prepaid products. Euronet operates and
processes transactions from 39 countries.
Euronet's global payment network is extensive – including over 10,500 ATMs and approximately
48,000 POS terminals which are under management in 16 countries; a growing portfolio of
outsourced debit and credit card services and card software solutions; a prepaid processing
network of 370,000 point-of-sale terminals across 189,000 retailer locations in 12 countries; and a
consumer-to-consumer money transfer network of over 11,000 sending locations in 13 countries
and more than 56,000 payout locations in approximately 100 countries. With corporate
headquarters in Leawood, Kansas, USA, and 35 worldwide offices, Euronet serves clients in
approximately 130 countries. For more information, please visit the Company's web site at
www.euronetworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding Euronet Worldwide, Inc.,
MoneyGram International, Inc., and the combined company after the completion of the proposed transaction between
Euronet and MoneyGram. Forward-looking statements generally can be identified by the use of statements that
includes words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will” or other similar
words or phrases. These statements include, but are not limited to, statements about the anticipated consequences and
benefits of the proposed transaction, including future strategic and financial benefits, the plans, objectives,
expectations and intentions of Euronet following the completion of the proposed transaction and other statements that
are not historical facts. These statements are based upon the current beliefs and expectations of Euronet’s
management and publicly available information about MoneyGram, and are subject to significant risks and
uncertainties. Actual results may vary materially from those anticipated in such forward-looking statements as a result
of a number of factors, including: the failure of MoneyGram to accept Euronet’s proposal; the failure to consummate
any transaction agreed to between Euronet and MoneyGram or to consummate any such transaction in the expected
timeframe; the risk that the opportunities and synergies anticipated to result from the proposed transaction may not be
fully realized or may take longer to realize than expected; conditions imposed with obtaining governmental approvals
and rulings on or regarding the transaction; the risk that the businesses of Euronet and MoneyGram will not be
integrated successfully; disruption from the proposed transaction making it difficult to maintain relationships with
employees, customers or other third parties with which we do business; technological developments affecting the
market for Euronet’s or MoneyGram’s products and services; foreign exchange fluctuations; and changes in laws and
regulations affecting Euronet’s or MoneyGram’s businesses. Additional risks are described in Euronet’s and
MoneyGram’s filings with the Securities and Exchange Commission (“SEC”), including Euronet’s and MoneyGram’s
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these
filings may be obtained from the Information Agent as described below.
ADDITIONAL INFORMATION
This press release is neither an offer to exchange nor a solicitation of an offer to exchange any securities of
MoneyGram. The exchange offer (the “Exchange Offer”) for the outstanding shares of MoneyGram common stock
described in this press release has not commenced. In connection with the proposed transaction, Euronet intends to
file relevant materials with the SEC, such as a Registration Statement on Form S-4, a Tender Offer Statement on
Schedule TO (including a prospectus-offer to exchange, a letter of transmittal and other offer documents) and a proxy
statement (collectively, the “Offer Documents”) and any offers or solicitations will be made only pursuant to the Offer
Documents filed with the SEC. Investors are advised to read carefully and in their entirety the Offer Documents that
are filed with the SEC when they become available because they will contain important information.
Euronet and its directors, executive officers and certain other employees and representatives of Euronet may be
considered “participants in a solicitation” of proxies in connection with the proposed transaction. Information about
Euronet’s executive officers and directors is available in Euronet’s proxy statement, dated April 11, 2007, for its 2007
annual meeting of stockholders. Additional information about the interests of potential participants in a solicitation
will be in the Offer Documents, if and when they become available, and other relevant documents filed with the SEC.
Euronet and MoneyGram stockholders may obtain copies of the Offer Documents and other relevant documents filed
with the SEC
for free, when they become available, at the SEC's website at www.sec.gov or by calling Innisfree M&A
Incorporated, the Information Agent for the Exchange Offer, toll-free in the U.S. and Canada at 877-456-3488 or tollfree
in Europe at 00 800 7710 9970.
 |
Dec 13, 2007 EURONET CONFIRMS OFFER TO ACQUIRE MONEYGRAM FOR $1.65 BILLION IN EURONET STOCK
Expects Accretive Combination To Deliver Substantial Immediate And Long-Term Value To Shareholders Of Both Companies
Euronet To Hold Conference Call At 9:00 AM ET Today To Discuss Proposal
Leawood, KS, December 13, 2007 – Euronet Worldwide Inc. (Nasdaq: EEFT) today confirmed it
delivered a letter to the Board of Directors of MoneyGram International, Inc. (NYSE: MGI) on
December 4, 2007, in which Euronet offered to acquire MoneyGram in a tax-free, all-stock
transaction based on a fixed exchange ratio of 0.6179 Euronet common shares for each share of
MoneyGram. Based on the closing price of Euronet shares on December 4, the offer is valued at
approximately $1.65 billion, or $20.00 per MoneyGram share, a premium of approximately 43% to
the closing price of MoneyGram shares that day.
Euronet’s letter provides compelling rationale for the proposed transaction, which Euronet expects
would deliver substantial immediate and long-term value for the shareholders of both companies.
Specifically, Euronet believes that the proposed transaction would:
• Create a powerful new global player in the money transfer business well positioned to
capture share in a highly fragmented market;
• Expand the geographic reach of both companies and unlock compelling opportunities by
combining Euronet’s and MoneyGram’s complementary distribution networks, corridors
and agent bases;
• Enable the companies to further benefit from the rapid growth of the money transfer market
in key emerging countries, such as China and India; and
• Generate double-digit accretion and deliver significant synergies.
Presented below is the full text of the letter sent to the Board of Directors of MoneyGram:
December 4, 2007
Philip W. Milne
Chairman of the Board and Chief Executive Officer
MoneyGram International, Inc.
1550 Utica Avenue South, Suite 100
Minneapolis, MN 55416
Dear Phil,
I called to let you know I would be sending this letter to you and your Board, but was unable to
reach you. My Board and I were disappointed with your rejection of the compelling business
combination proposal we submitted to you several weeks ago. Your refusal to discuss with us the
merits of our proposal is not in the best interest of your shareholders.
We believe MoneyGram is an attractive business, and a combination with Euronet would create a
powerful new player in the international money transfer business that would deliver substantial
immediate and long-term value for the shareholders of both companies. As you know, we have
highly complementary distribution networks, corridors and agent locations. The combination we
envision will expand the geographic network of both companies and unlock compelling
opportunities, enabling us to leverage both of our international efforts and capture rapid growth in
global markets.
We remain enthusiastic about a business combination between Euronet and MoneyGram, and we
have enhanced our proposal to enable MoneyGram’s shareholders to participate even more
substantially in the combined enterprise. In addition, we understand you may be interested in
obtaining financing for your business in the near term and we are prepared to make available to
MoneyGram interim financing in the context of an agreement on a business combination
transaction. We have more than $250 million of cash in the bank, and additional funds available
from our existing financing arrangements, and we are prepared to move quickly to put in place an
interim financing arrangement if you so desire.
I trust you will discuss this proposal with your Board, and I will summarize the principal terms of
our proposal so that your Board will have the benefit of our thinking and be able to consider it
fully:
Price and Structure: We are prepared to offer your shareholders a fixed exchange ratio of
0.6179 shares of Euronet common stock per MoneyGram share. Based on Euronet’s
closing price today, this represents value of $20.00 per MoneyGram share (or
approximately $1.65 billion for the fully diluted equity of MoneyGram). Based on today’s
closing prices of Euronet and MoneyGram shares, our offer provides approximately a 43%
current premium for MoneyGram shareholders. Receipt of our shares would be tax-free to
your shareholders. If the results of our due diligence review (discussed below) would
warrant it, we would be prepared to increase our proposed offer price.
Due Diligence: Our proposal is, of course, based on having the opportunity to conduct a
customary due diligence review of MoneyGram’s businesses including, specifically, your
investment portfolio (which, based on our conversations, we believe may require a cash
infusion in the very short term). Similarly, because we are offering our stock to your
shareholders, we are prepared to allow you to conduct a customary due diligence review of
our business.
Under this proposal, MoneyGram shareholders would own approximately 46% of the combined
company (on a fully converted and diluted basis), enabling them to benefit from the vast potential
of a well-positioned competitor in an attractive growth business. This proposal would bring
together the second and third largest global send and receive networks. The combined entity
would have an extensive infrastructure serving more than 170 countries that includes
approximately 205,000 money transfer agent locations, 370,000 top-up locations, 10,500 ATMs,
and over 80 international banking relationships. Importantly, Euronet’s complementary network
of international banks and retailers would position the combined entity to further benefit from the
rapid growth of the money transfer market in key emerging countries, such as China and India,
which are now as large as the Mexican market.
Moreover, even without taking into account the substantial revenue synergies we expect to
generate, we believe the transaction would yield double-digit accretion to Euronet’s cash earnings
per share beginning in 2008. This would provide potential value to your shareholders in excess of
$20.00 per share.
To advance our discussions, we propose that we enter into a confidentiality agreement that would
allow us both to conduct our due diligence and to begin to negotiate a merger agreement. We are
prepared to move forward expeditiously in conducting due diligence, negotiating transaction
agreements, and working together to obtain all the requisite regulatory approvals required to close
the transaction. We believe that, working together, we can reach a definitive agreement by yearend.
Our preference is not to make our proposal public, and we expect you would keep it confidential.
Of course, we reserve the right to discuss our proposal with your shareholders should you persist in
being unwilling to meet with us to discuss it.
Our Board has unanimously approved the submission of this proposal, and we look forward to
hearing from you as soon as possible and, in any event, within the next week.
Very Truly Yours,
/s/Michael J. Brown
Michael J. Brown
Chairman and Chief Executive Officer
cc: MoneyGram International Board of Directors
Investor Conference Call
Euronet will hold a conference call today at 9:00 a.m. ET for the investment community.
Participants may listen via telephone by dialing 877-407-9210 if calling from the United States, or
201-689-8049 if dialing from outside of the United States. Please dial in 10 minutes prior to the
start of the call. A telephone replay will also be available beginning approximately one hour after
the event. To access the replay, please dial 877-660-6853 for callers within the United States and
at 201-612-7415 for callers outside of the United States and enter account number 286 and
conference ID number 265748. A live audio webcast of the call also will be available and archived
on the company's website at www.euronetworldwide.com or via
http://www.vcall.com/IC/CEPage.asp?ID=124182. The investor presentation will be available for
download at the start of the call on the company’s website at
www.eeft.com/investors/library/presentations.asp.
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, mobile
operators and retailers which include comprehensive ATM and POS operation and management
services; credit and debit card outsourcing services; card issuing and merchant acquiring services;
software solutions; consumer money transfer and bill payment services; and electronic distribution
of top-up services for prepaid mobile airtime and other prepaid products. Euronet operates and
processes transactions from 39 countries.
Euronet's global payment network is extensive – including over 10,500 ATMs and approximately
48,000 POS terminals which are under management in 16 countries; a growing portfolio of
outsourced debit and credit card services and card software solutions; a prepaid processing
network of 370,000 point-of-sale terminals across 189,000 retailer locations in 12 countries; and a
consumer-to-consumer money transfer network of over 11,000 sending locations in 13 countries
and more than 56,000 payout locations in approximately 100 countries. With corporate
headquarters in Leawood, Kansas, USA, and 35 worldwide offices, Euronet serves clients in
approximately 130 countries. For more information, please visit the Company's web site at
www.euronetworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding Euronet Worldwide, Inc.,
MoneyGram International, Inc., and the combined company after the completion of the proposed transaction between
Euronet and MoneyGram. Forward-looking statements generally can be identified by the use of statements that
includes words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will” or other similar
words or phrases. These statements include, but are not limited to, statements about the anticipated consequences and
benefits of the proposed transaction, including future strategic and financial benefits, the plans, objectives,
expectations and intentions of Euronet following the completion of the proposed transaction and other statements that
are not historical facts. These statements are based upon the current beliefs and expectations of Euronet’s
management and publicly available information about MoneyGram, and are subject to significant risks and
uncertainties. Actual results may vary materially from those anticipated in such forward-looking statements as a result
of a number of factors, including: the failure of MoneyGram to accept Euronet’s proposal; the failure to consummate
any transaction agreed to between Euronet and MoneyGram or to consummate any such transaction in the expected
timeframe; the risk that the opportunities and synergies anticipated to result from the proposed transaction may not be
fully realized or may take longer to realize than expected; conditions imposed with obtaining governmental approvals
and rulings on or regarding the transaction; the risk that the businesses of Euronet and MoneyGram will not be
integrated successfully; disruption from the proposed transaction making it difficult to maintain relationships with
employees, customers or other third parties with which we do business; technological developments affecting the
market for Euronet’s or MoneyGram’s products and services; foreign exchange fluctuations; and changes in laws and
regulations affecting Euronet’s or MoneyGram’s businesses. Additional risks are described in Euronet’s and
MoneyGram’s filings with the Securities and Exchange Commission (“SEC”), including Euronet’s and MoneyGram’s
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these
filings may be obtained from the Information Agent as described below.
ADDITIONAL INFORMATION
This press release is neither an offer to exchange nor a solicitation of an offer to exchange any securities of
MoneyGram. The exchange offer (the “Exchange Offer”) for the outstanding shares of MoneyGram common stock
described in this press release has not commenced. In connection with the proposed transaction, Euronet intends to
file relevant materials with the SEC, such as a Registration Statement on Form S-4, a Tender Offer Statement on
Schedule TO (including a prospectus-offer to exchange, a letter of transmittal and other offer documents) and a proxy
statement (collectively, the “Offer Documents”) and any offers or solicitations will be made only pursuant to the Offer
Documents filed with the SEC. Investors are advised to read carefully and in their entirety the Offer Documents that
are filed with the SEC when they become available because they will contain important information.
Euronet and its directors, executive officers and certain other employees and representatives of Euronet may be
considered “participants in a solicitation” of proxies in connection with the proposed transaction. Information about
Euronet’s executive officers and directors is available in Euronet’s proxy statement, dated April 11, 2007, for its 2007
annual meeting of stockholders. Additional information about the interests of potential participants in a solicitation
will be in the Offer Documents, if and when they become available, and other relevant documents filed with the SEC.
Euronet and MoneyGram stockholders may obtain copies of the Offer Documents and other relevant documents filed
with the SEC for free, when they become available, at the SEC's website at www.sec.gov or by calling Innisfree M&A
Incorporated, the Information Agent for the Exchange Offer, toll-free in the U.S. and Canada at 877-456-3488 or tollfree
in Europe at 00 800 7710 9970.
|
July 17, 2007
RIA Envia expands its payout network in Poland by signing Bank
Pocztowy (Post Bank)
LEAWOOD, KANSAS AND LOS ANGELES, CALIFORNIA - July 17, 2007 - RIA Envia Inc.
(RIA), the third-largest global money transfer company and a subsidiary of
Euronet Worldwide Inc. (NASDAQ:EEFT), today announced that RIA has expanded
its payout network in Poland by signing a correspondent agent agreement with
Bank Pocztowy (Post Bank). The agreement expands RIA's payout network
significantly in Poland with the addition of Post Bank's nearly 8,000 payout
locations.
Post Bank, the fast-developing bank in Poland, will soon offer consumers the
option to receive RIA money transfers from any of its nearly 8,000 payout
locations across the country. These locations are a combination of bank
branches and post offices. The expansion of RIA's network will enable more
beneficiaries to conveniently access a fast and reliable money transfer
service in Poland. Furthermore, the agreement with Post Bank enables RIA
customers to send money transfers directly to any bank account or
beneficiaries can opt for cash pick-up at any of Post Bank payout locations.
Post Bank will begin distributing money transfers for RIA by August of 2007.
"We are pleased to announce the addition of Post Bank Poland to our growing
global correspondent network. Post Bank is acting on the base of the largest
payout network of post/banking outlets in the country, making them an
important correspondent partner for RIA," said Michael J. Brown, chairman
and chief executive officer, Euronet Worldwide Inc. "Polish emigration has
grown since Poland's accession to the European Union in 2004 and the
subsequent opening of Western European labor markets making it a very
attractive market for RIA. Our association with Post Bank will enable us to
provide Polish nationals living abroad, particularly in the U.K., Germany,
Italy and U.S., with a more reliable and convenient way to send money home
to their families. We look forward to a mutually beneficial and long-term
relationship with Post Bank."
"The Polish economy has benefited significantly from the inflow of
remittances in recent years. Our relationships with companies like RIA
affirm our commitment to our customers to provide them the most reliable and
convenient financial services. We look forward to enabling our customers to
receive money sent to them from their loved ones abroad through the RIA
network," said Stanislaw Zebrowski, chief specialist of Corporate
Department, Bank Pocztowy.
The opening of the Western European labor markets to Polish workers has
fueled growth in money transfers with financial inflows to Poland reaching
approximately $8 billion a year in remittances. For example, one of the
fastest- growing Polish communities resides in the United Kingdom, where
nearly 400,000 work permits have been issued to Polish nationals since May
2004, according to the UK Home Office.
About RIA Envia Inc.
RIA, a Euronet Worldwide subsidiary, is the third-largest global
consumer-to-consumer remittance company. RIA's primary services include
money transfer, bill payment, money orders and check cashing. The company
offers transfers under the brands RIA Money Transfer, AFEX Money Express and
Kim Phu Money Transfer. Originating money transfers across 13 countries in
North America, the Caribbean, Europe and Asia, RIA terminates transactions
through an extensive payer network across more than 85 countries. For more
information, visit http://www.riafinancial.com.
About Bank Pocztowy Poland
Bank Pocztowy S.A. is the universal bank. It was established in 1990. The
shareholders of Bank Pocztowy are: PPUP Poczta Polska (Polish Post Office)
(75% less one share) and Bank PKO BP S.A. (25% plus one share). It differs
from other financial institutions because it allows customers to take
advantage of various financial services at their local post office. Poczta
Polska operates from nearly 8,000 offices. The rich range of services
provides products for individual customers, as well as mass payment
wholesalers, and local authorities into the bargain.
|

Contacts:
Media and Investor Relations Contact:
Shruthi Dyapaiah
Euronet Worldwide, Inc.
913-327-4225 sdyapaiah@euronetworldwide.com
Agents and Correspondents Contact:
Marcelo Castillo
Ria Envia Inc.
562-345-2177 marceloc@riafinancial.com
May 17, 2007 RIA Envia announces agreement with Banamex to offer money transfer services in Mexico
LEAWOOD, KANSAS AND LOS ANGELES, CALIFORNIA - May 17, 2007 - RIA Envia
Inc. ("RIA"), the third-largest global money transfer company and a
subsidiary of Euronet Worldwide Inc. (NASDAQ:EEFT), today announced that
it has entered into a strategic agreement with Banco Nacional de Mexico,
S.A. ("Banamex"), a unit of Citigroup, to send RIA and AFEX money
transfers to Mexico through the Banamex network.
RIA, established in 1987, has a global network of over 41,000 agents
offering consumer money transfer services in more than 95 countries and
territories. Acquired by Euronet, a leading electronic payments provider
in April 2007, RIA processes approximately $4.5 billion in money
transfers annually.
"We are very pleased to add Banamex to our correspondent network in
Mexico," said Juan Bianchi, chief executive officer of RIA Envia Inc.
"Thanks to this agreement, our customers will now have access to over
4,500 new locations of the Banamex network, which include many Banamex
locations where our customers can receive their money seven days a week
and even 24 hours a day. Additionally, our agreement enables Banamex to
provide its customers with a greater level of choice for their money
transfer needs."
Banamex, a unit of Citigroup, was established in 1884 and is the premier
financial institution in Mexico. The Banamex network presently has over
1,500 bank branches and more than 3,000 Banamex Aqui non-bank locations
throughout the country. Banamex's extensive network will soon offer
payment of RIA and AFEX money transfers to customers in Mexico.
RIA works with Citigroup affiliates in several countries including
correspondent relationships with Banco Cuscatlan, the leader in money
transfers in El Salvador and throughout Central America and Grupo
Financiero Uno ("GFU"), the largest credit card issuer in Central
America. Both Banco Cuscatlan and GFU were recently acquired by
Citigroup. Additionally, Bancuscatlan Transfers Inc., also a unit of
Citigroup, recently signed an agreement with RIA to serve as its agent
in the U.S. in locations across New York, California, Texas, Maryland
and Virginia.
About RIA Envia Inc.
RIA, a Euronet Worldwide subsidiary, is the third-largest global
consumer-to-consumer remittance company. RIA's primary services include
money transfer, bill payment, money orders and check cashing. The
company offers transfers under the brands RIA Money Transfer, AFEX Money
Express and Kim Phu Money Transfer. Originating money transfers across
13 countries in North America, the Caribbean, Europe and Asia, RIA
terminates transactions through an extensive payer network across 85
countries. For more information, visit www.riafinancial.com.
About Grupo Financiero Banamex
Grupo Financiero Banamex is a member of Citigroup, Inc., and it is the
leading financial group in Mexico with Banco Nacional de Mexico
("Banamex") founded in 1884. The group has an outstanding position in
the country's financial markets through its affiliates, and it includes
deposits, consumer finance, handling resources from investment
partnerships and funds for retirement, insurance banking, pensions, and
stock market brokerage. The group has an extensive network of
distribution of over 1,500 branches, over 3,000 Banamex Aqui
Correspondents and 5,800 ATMs located throughout the country. For more
information, visit www.banamex.com.
About Citigroup Inc.
Citigroup, the leading global financial services company, has some 200
million customer accounts and does business in more than 100 countries,
providing consumers, corporations, governments and institutions with a
broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, securities
brokerage, and wealth management. Major brand names under the trademark
red arc include: Citi, CitiFinancial, Primerica, Citi Smith Barney and
Banamex. Additional information may be found at
www.citigroup.com or www.citi.com 
Contacts:
Media and Investor Relations Contact:
Shruthi Dyapaiah
Euronet Worldwide, Inc.
913-327-4225 sdyapaiah@euronetworldwide.com
Agents and Correspondents Contact:
Marcelo Castillo
Ria Envia Inc.
562-345-2177 marceloc@riafinancial.com
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April 4, 2007 Euronet Worldwide completes acquisition of RIA Envia, Inc., the third-largest global money transfer company
LEAWOOD, KANSAS -April 4, 2007 -Euronet Worldwide, Inc. ("Euronet" or the "Company") (NASDAQ: EEFT), a leading electronic payments provider, today announced the completion of its acquisition of RIA Envia, Inc. ("RIA"). With the closing of the RIA acquisition, Euronet has established itself as the third-largest global money transfer company, based upon the amount of money transferred. In connection with the closing of the RIA acquisition, Euronet entered into a $290 million secured syndicated credit facility consisting of a $190 million seven-year term loan and a $100 million five-year revolving credit facility (together as the "new Credit Facility"). Under the terms of the purchase agreement announced on November 21, 2006, as amended, Euronet acquired 100% of RIA's common stock outstanding for $380 million in cash, 4,053,606 shares of Euronet common stock, 3,685,098 contingent value rights and 3,685,098 stock appreciation rights. The initial value of Euronet common stock for purposes of the contingent value rights and stock appreciation rights was set at $27.136333 per share, based upon the average of the daily high and low trading prices per share of Euronet common stock over the 30 trading days ending March 30, 2007. The $380 million in cash was funded through cash from the Company's balance sheet and the net proceeds of the $190 million seven-year term loan. The $190 million seven-year term loan bears interest at LIBOR plus 200 basis points or prime plus 100 basis points and contains a 1% per annum principal amortization requirement, payable quarterly, with the remaining balance outstanding due at the end of year seven. The $100 million five-year revolving line of credit will be priced initially at LIBOR plus 200 basis points or prime plus 100 basis points, subject to a pricing grid that adjusts the spread each quarter based upon the Company's consolidated total leverage ratio. Euronet's new $100 million five-year revolving credit facility replaces its existing $50 million revolving credit facility. The new Credit Facility may be expanded by up to an additional $150 million in term loan and up to an additional $25 million for the revolving line of credit, subject to satisfaction of certain conditions including pro forma debt covenant compliance. The new Credit Facility contains certain mandatory prepayments and contains customary events of default and financial covenants, including leverage ratios. The leverage ratios will step down over the next eighteen months thereby requiring the Company to reduce its leverage. Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Such forward-looking statements include the expectations, plans or prospects for Euronet. The statements made by Euronet are based upon management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include market conditions and other factors beyond Euronet's control and the risk factors and other cautionary statements discussed in Euronet's filings with the U.S. Securities and Exchange Commission (the "SEC") including but not limited to Euronet's Annual Report on Form 10-K for the period ended December 31, 2006. Copies of this filing may be obtained by contacting Euronet or the SEC. Euronet does not intend to update these statements and undertakes no duty to any person to effect any such update under any circumstances. About Euronet Worldwide Euronet Worldwide is an industry leader in processing secure electronic financial transactions. The Company offers outsourcing and consulting services, integrated EFT software, network gateways, electronic prepaid top-up services to financial institutions, mobile operators and retailers, as well as electronic consumer money transfer and bill payment services. Euronet operates and services the largest pan-European group of ATMs and operates the largest Indian shared ATM network. Euronet is also one of the largest providers of prepaid processing, or top-up services, for prepaid mobile airtime. The Company is a licensed electronic money transmitter and bill payment company via Euronet Payments & Remittance Inc. The Company has processing centers located in the U.S., Europe and Asia, and processes electronic top-up transactions at more than 296,000 point-of-sale terminals across more than 161,000 retailers in Europe, Asia Pacific, Africa and the U.S. With corporate headquarters in Leawood, Kansas, USA, and 26 worldwide offices, Euronet serves clients in approximately 100 countries. Visit the Company's web site at www.euronetworldwide.com. About RIA Envia, Inc.
Established in 1987, RIA is the third-largest global consumer-to-consumer remittance company. Processing $4.5 billion in money transfers annually, RIA originates transactions through a network of over 10,000 sending agents and 98 company-owned stores located throughout 13 countries in North America, the Caribbean, Europe and Asia and terminates transactions through a payer network of over 32,000 locations across 82 countries. RIA's primary services include money transfer, bill payment, money orders and check cashing. RIA offers transfers under the brands RIA Money Transfer, AFEX Money Express and Kim Phu Money Transfer. 
Contacts:
Media and Investor Relations Contact:
Shruthi Dyapaiah
Euronet Worldwide, Inc.
913-327-4225 sdyapaiah@euronetworldwide.com
Agents and Correspondents Contact:
Marcelo Castillo
Ria Envia Inc.
562-345-2177 marceloc@riafinancial.com
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