LML Signs Letter of Intent With CFDC Holdings Corp.
JACKSONVILLE, Fla., Oct. 13 /PRNewswire/ -- LML Payment Systems Inc. (the ''Company'') (Nasdaq: LMLP - news) is pleased to announce it has entered into a letter of intent with CFDC Holdings Corp. (''CFDC'') to acquire its check verification/collection business located in Dallas, Texas.
CFDC, through its subsidiaries, specializes in providing check authorization and recovery services to department stores and large convenience store chains. ''This transaction brings to the Company a very talented management group and extremely experienced staff, as well as clients who are household names. With such enormous scalable capacity, these operations will form a real cornerstone in our strategic development as we continue to acquire both merchants and transaction volume,'' said Company President, Patrick Gaines.
In May 1999, CFDC and its subsidiaries were ranked by the Nilson Report as the 12th largest check verification company in the United States. According to the report, they verified 93.2 million checks with a dollar value of $3.2 billion from a total of 7,892 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 also announces its withdrawal from negotiations to purchase CVE/Computer Cheque of Omaha, a division of NOVA Corp. ''At the end of the day, we just didn't see the value as it related to the purchase price,'' said Gaines.
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. |
