News release: Hopefully, Just the beginning of good things to come.
Dan
Signs Letter of Intent With NOVA Corporation
PR Newswire - July 22, 1999 10:15
JACKSONVILLE, Fla., July 22 /PRNewswire/ -- LML Payment Systems Inc. (the "Company") (Nasdaq: LMLP) is pleased to announce it has entered into a non-binding letter of intent with NOVA Corporation (NYSE: NIS) to acquire the check verification/collection business of its subsidiary CVE/Computer Cheque ("CVE"). The closing of the transaction is subject, among other things, to the completion of due diligence, negotiation of definitive purchase agreements and both boards' approval of the transaction. Closing is anticipated to take place on or before September 30, 1999.
CVE, based in Omaha, Nebraska with offices in Minneapolis, Minnesota, Des Moines, Iowa and Lincoln, Nebraska, provides check authorization services to a wide range of businesses from individually owned retail establishments to large chain grocery stores. In May 1999, the Nilson Report (issue #691), ranked CVE the 9th largest check verification company in the United States. According to the report, in 1998, CVE verified 72.1 million checks with a dollar value of $4.182 billion from a total of 3,725 merchant outlets.
Nilson reports in the same issue that in 1998 the check authorization industry reported 6.66 billion checks were verified with a dollar value in excess of $338 billion -- an increase of 16.6% and 14.4% respectively over the previous year. They also reported that in 1998 over $1.27 billion in revenues were generated by verification and guarantee firms from authorizing checks valued at $408.82 billion from transaction fees, discount fees, fixed monthly payments, statement fees and licensing fees.
The Company, through its ChequeMARK group of subsidiaries, is a payments processor specializing in processing checking transactions electronically and owns U.S. Patent No. 5,484,988 with regard to a "Checkwriting Point of Sale System" which, through a centralized database and authorization system, is capable of providing and administering various electronic payment services for consumers and businesses.
SOURCE LML Payment Systems, Inc.
/CONTACT: Patrick Gaines, President of LML Payment Systems Inc.,
604-689-4440, or Investor Relations of LML Payment Systems Inc., 800-888-2260/
(LMLP NIS) |
