PMT Services Acquires Money Transfer Systems, Inc.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 25, 1998
Fourth Fiscal 1998 Acquisition Includes Merchant Portfolio
With Approximately 5,000 Accounts and a Sales Force
Producing 400 to 500 New Merchant Accounts Per Month
Richardson M. Roberts, Chairman and Chief Executive Officer of PMT Services, Inc. (Nasdaq/NM: PMTS - news), today
announced the acquisition of Money Transfer Systems, Inc. (''MTSI''), an independent service organization headquartered in
Clearwater, Florida. MTSI provides electronic credit card transaction processing services to a portfolio of approximately
5,000 merchant accounts, which currently generates annualized charge volume of approximately $200 million. In addition, its
field sales force produces between 400 to 500 new merchant accounts each month.
''We are pleased to be formally joining forces with MTSI,'' remarked Mr. Roberts, ''a company from which we have
previously purchased several account portfolios. From these prior relationships, we have come to know the MTSI
management team very well, and we welcome them to PMT confident of their skills and entrepreneurial drive.
''This transaction, which is the fourth completed in fiscal 1998, highlights PMT's dual strategies for growth through internal
development and acquisition. While we are again acquiring a high quality merchant portfolio from MTSI, the primary focus of
this transaction was to bring the company's people - its management and seasoned sales force - into PMT. MTSI benefits
from having access to PMT's buying power in pricing and purchasing, as well as from utilizing PMT's service platform, which is
one of the best in the market place. PMT benefits from the expansion of its ability to generate internal sales by increasing its
sales and marketing infrastructure to achieve its future growth targets. This acquisition represents the ninth transaction in the last
20 months through which we have increased PMT's internal account generation capabilities from an average of approximately
600 per month to approximately 3,500 per month.
''It is also representative of the ongoing opportunities we have to pursue the further consolidation of our markets. PMT
continues to enjoy one of the strongest financial positions in its industry and has built an outstanding record of successfully
completing and integrating acquisitions into its business. As a result, we expect industry consolidation pressures to continue to
favor PMT. As one of the largest and lowest cost providers among its peers, PMT remains well positioned to pursue
appropriate acquisition opportunities aggressively.''
Investors are cautioned that this release contains forward-looking statements, such as those relating to the benefits of the MTSI
acquisition, that are based upon current expectations and involve a number of risks and uncertainties. Actual operations and
results may differ materially from those expressed in the forward-looking statements made by the Company. The factors that
could cause actual results to vary include PMT's ability to retain the field sales force and the ongoing performance of the field
sales force; the Company's ability to integrate the acquisition successfully with its processing systems and products; the attrition
of merchants from the acquired portfolio; and other trends or uncertainties as noted in PMT's periodic filings with the SEC.
PMT Services, Inc. is an independent service organization which markets and services electronic credit card authorization and
payment systems to small retail and professional businesses located throughout the United States. PMT's account portfolio has
grown through the internal development of accounts using telemarketing and a field sales force as well as through the purchase
of account portfolios. PMT is one of the largest independent service organizations in the country.
Contact:
PMT Services Inc., Nashville
Clay Whitson, 615/743-3800 ext.3200 |
