Cadmus Adds Hanover EFTPOS to Finance Portfolio
Media Release for Immediate Release
Cadmus Adds Hanover EFTPOS Book to its Finance Portfolio
Auckland, 22 March 2006 – Cadmus (NZX:CTL), New Zealand’s leading exporter of payment solutions announced today that it has purchased the EFTPOS finance business of Finance Portfolio Limited and Nationwide Finance Limited who are part of the Hanover Group.
The deal will be operated and managed by Cadmus wholly owned subsidiary Product Rentals Limited (“PRL”) as a separate entity and rental book. This will provide a clear demarcation between the Cadmus rental business and that of those organisations that were using the Hanover facilities.
As part of the deal, PRL will continue to provide services to the dealers and suppliers of EFTPOS products financed by Hanover, and will actively support their initiatives to further grow this aspect of the PRL business.
The deal increases the PRL EFTPOS rental business by more than $10M and now makes Cadmus the largest EFTPOS terminal rental company in the NZ market.
Ian Bailey, Managing Director of Cadmus says that the deal means that the company now has the ability to further increase its market share in the overall EFTPOS terminal market. It also provides a critical mass for access to better funding lines which in turn provides a product rental facility for entry into other more competitive overseas markets.
“The acquisition of Hanover’s EFTPOS finance book is a strategically strong and positive move for Cadmus because it will both add to the positive revenue stream for the business as well as continue to provide a strong cashflow business to allow us to penetrate other international markets with a range of innovative finance options,” says Bailey.
“The rental business is strategically important to us. We can provide our customers with the finance options they prefer and build a profitable recurring revenues base.”
Greg Muir, Chairman of Hanover Group says that the sale of the EFTPOS finance book to Cadmus was about timing and rationalization for the Group.
“Hanover’s focus remains large scale and/or high value relationship lending while the EFTPOS finance book fits better with the supplier of the underlying technology” says Muir.
The Hanover EFTPOS finance book will be seamlessly managed by PRL but will remain as a stand alone, arms length entity in the Cadmus Group delivering both transparency and added synergies for Cadmus’ competitors and dealers alike.
Cadmus will integrate the Hanover EFTPOS finance book into its business by next month and it is expected that this will assist in the generation of further revenue increases for both the year end and over future years.
Cadmus continues to identify other potential business sectors that allow for company growth and an increase in shareholder value.
About Cadmus Technology
Cadmus Technology Limited (NZX: CTL) designs, develops and implements innovative point-of-sale payment solutions for merchant businesses worldwide. The company is New Zealand’s largest manufacturer and exporter of payment terminals, with an increasing customer base developing internationally. The company offers payment and data management solutions, including EFTPOS and data capture terminals, loyalty programs and customer relationship management solutions. Cadmus also provides end-to-end payment solution and data management services for retail, business payment and transactional processing requirements. Clients include Bank of New Zealand, Wrightson, TAB, Wellington Combined Taxis, On-Q Business Systems Pty Ltd, eScience Systems Malaysia, Paysys (M) SDN BHD, Coles Myer Australia, Caltex Australia, Harvey Norman Australia, Bi-low, Priceline and Bendigo Bank.
For more information, please visit www.cadmustechnology.com
About Hanover Group
Hanover Group of companies is a proven performer and has been built on a history of strong and steady growth. Originating from a single business, the Group has expanded through organic growth and acquisition to become one of New Zealand's leading strategic investment companies and its largest privately owned financial services group.
The Group's principal area of expertise is in property and property related transactions. The Group's portfolio also extends to strategic capital investments and it has developed a presence in a broad range of financial solutions across diverse market sectors.