(PR NEWSWIRE) LML Buys 12th Largest Firm in $1.27 Billion Check Authorizat
LML Buys 12th Largest Firm in $1.27 Billion Check Authorization Industry
Latest Acquisition Verified 93.2 Million Checks Last Year
For 'Household-Name' Retailers
JACKSONVILLE, Fla., Dec. 1 /PRNewswire/ -- Further to our news release
dated October 13th, 1999, LML Payment Systems Inc. (Nasdaq: LMLP) ("LML" or
the "Company") is pleased to announce the purchase of CFDC Holdings Corp.
("CFDC"). Nilson Report numbers rank CFDC's subsidiary CFData as the 12th
largest check verification company in the United States. Last year, according
to the Nilson Report, CFData verified checks with a dollar value of
$3.2 billion from a total of 7,892 retail outlets. CFData's customers include
JC Penney, KFC, certain 7-Eleven franchisees and the corporately-owned
7-Eleven stores across the country. The check verification, collection, call
center and NSF handling capabilities of CFData augment the technology provided
by the Company, and build upon its existing suite of check handling services.
"This purchase sets the stage for the rapid growth targeted in our
strategic plan. Not only does CFData check handling volume mean immediate
revenue gains, but the infrastructure, management and handling capacity is now
in place for our expanding acquisition plans," said Company President Patrick
Gaines. "Converting existing transaction volume to our patented electronic
check conversion system offers a unique opportunity to increase our revenues,
while at the same time bringing more value to our clients and enhancing our
productivity in the process."
The Company owns US Patent No. 5, 484, 988 with regard to a "Checkwriting
Point of Sale System." This patented technology provides centralized database
and electronic check authorization services for businesses and consumers.
"We have an aggressive acquisition plan, focusing on strong and consistent
revenue streams, and the generation of a critical volume of transactions for
the Company," Gaines remarked. "Our unique industry consolidation strategy is
designed to maximize the long-term viability of our technology. We already own
the technology, and through continued investment we will increase our share of
the markets that use the technology."
"The world of check acceptance is changing rapidly. LML's technological
leadership gives it a distinct advantage as the industry landscape continues
to evolve," commented outgoing CFData President W. Harwood Runner. Mr. Runner
will be serving as a consultant to the Company to assist in the execution of
its aggressive acquisition plans.
According to Nilson Reports, in 1998 approximately 30 companies
participating in the check authorization industry verified 6.66 billion checks
in the United States, with a dollar value in excess of $338 billion. These
figures represent an increase in volume and value of 16.6% and 14.4%
respectively over the previous year. Overall industry revenues in 1998 were
reported at $1.27 billion from authorizing checks valued at $408.42 billion.
SOURCE LML Payment Systems, Inc.
-0- 12/01/1999
/CONTACT: Patrick Gaines, President, 904-281-1144, or Investor Relations,
800-888-2260, both of LML Payment Systems Inc./
(LMLP)
CO: LML Payment Systems, Inc.; CFDC Holdings Corp.
ST: Florida
IN: TLS FIN
SU: TNM
*** end of story ***
|
