Me too!
This aquisition is complete, and appears to add much to IVI's list of product offerings!!
IVI Checkmate Corp. Completes Acquisition of Debitek Holding Ltd.
Business Wire - December 21, 1998 07:14
ATLANTA and TORONTO--(BUSINESS WIRE)--Dec. 21, 1998--
Debitek Is A Leading Supplier of Cashless Payment Systems
IVI Checkmate Corp. (Nasdaq: CMIV)(TSE: IVC/IVI) today announced that the acquisition of Debitek Holding Limited (Debitek) of
Chattanooga, TN, was completed effective December 18th. IVI Checkmate acquired all of the outstanding stock of Debitek for $4.95
million in IVI Checkmate stock valued at $5.40 per share. The transaction will be accounted for as a pooling-of-interests.
Through its subsidiary Debitek, Inc., Debitek is a leading supplier of smart card and magnetic stripe card cashless payment systems to
closed user groups such as universities, public libraries, laundries, correctional institutions, corporate campuses, cruise ships, resorts, and
military facilities. Debitek markets its products via both a direct sales force and through a well-established network of systems integrators.
The acquisition of Debitek positions IVI Checkmate to expand into new markets with solutions that leverage Ingenico's worldwide
leadership in smart card technology. It also increases the solutions IVI Checkmate is able to offer to its traditional customer base of retailers
and financial institutions. With the critical mass of chip based smart cards building as a result of the increased popularity of closed systems,
there are many retailer and financial institutions that will need to interface closed system with their existing payment systems. To advance into
these new markets and better position itself in existing ones, IVI Checkmate will integrate Debitek's software libraries and hardware units
with Ingenico's smart card technology to form solutions that integrate the needs of closed systems and open payment systems.
Markets such as educational institutions and government agencies are adapting closed payment systems to streamline processes, reduce
costs and increase security. In North America, there are approximately 1,500 educational institutional communities with more than 3,000
individuals each. There are economic advantages for these institutions to implement closed payment system solutions. Additionally there are
related retail and financial services businesses that serve these populations. The U.S. government, through the "Balanced Budget
Down-Payment Act of 1996," has mandated federal aid distribution will be made electronically by 1999. As Social Security and other cash
benefits come online, retailers of all types will need to expand their electronic payment systems to integrate EBT payments while including
attributes that closed systems provide today.
Barry Thomson, President and CEO of IVI Checkmate Corp., "With the acquisition of Debitek completed, IVI Checkmate is aggressively
positioned to enter and penetrate the broad range of markets that would profit from closed systems. The integrated resources of Debitek,
IVI Checkmate, and Ingenico will work together to provide solutions that bridge the closed systems used in markets such as education and
government to the open payment systems of retail and financial institutions."
IVI Checkmate is the third largest electronic payment solutions provider in North America. IVI Checkmate is a full-service solutions
provider in the U.S., Canada, and Latin America serving the retail, financial, hospitality, banking, healthcare and transportation industries.
With offices in the U.S. and Canada as well as established strategic alliances and worldwide partnerships, IVI Checkmate is well positioned
to deliver leading products and global technologies to our customers.
This press release contains forward-looking statements subject to the safe harbor created by the Private Securities Litigation Reform Act of
1995. Management cautions that these statements represent projections and estimates of future performance and involve certain risks and
uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of
certain factors including, without limitation, the Company's dependence on its limited suppliers and manufacturers of component parts of its
products; rapid and significant technological developments that could delay the introduction of improvements in existing products or of new
products; the Company's dependence on its proprietary technologies (which may be independently developed by competitors); the
Company's dependence on a small number of large retail customers; the potential fluctuation in financial results as a result of the Company's
inability to make sales to large customers as well as the volume and timing of bookings received during a quarter and variations in sales mix;
competition from existing companies as well as new market entrants; and, the Company's dependence on key personnel.
CONTACT: IVI Checkmate Corp.
L. Barry Thomson, 416/245-6700
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