Johannesburg, June 17, 2016 – Net 1 UEPS Technologies, Inc. (“Net1” or the “Company”) (NasdaqGS: UEPS; JSE: NT1) today announced that it exercised its option to acquire the remaining 40% of Masterpayment AG (“Masterpayment”), a specialist payment services processor based in Munich, Germany, and finalized the earn-out purchase consideration related to the transaction concluded in April 2016. Net1 now owns 100% of Masterpayment, having acquired 60% of Masterpayment in April 2016.
“We believe there is an opportunity to accelerate the wider implementation of Masterpayment’s business model across carefully selected markets,” said Serge Belamant, Chairman and CEO of Net1.
“We therefore decided to acquire the remaining 40% shareholding to ensure that the Masterpayment management team can be completely focused on the implementation of this strategy. As part of this transaction, Masterpayment’s executive management have committed to five year employment agreements, including variable compensation aligned with the delivery of our strategic plan. We have committed to provide Masterpayment with the additional working capital required to drive the considerable expansion of their business activities over the next eighteen months, and we expect these initiatives to contribute meaningfully to our operating results during the 2018 fiscal year,” he concluded.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies. The Company operates market-leading payment processors in South Africa and the Republic of Korea. Through Transact24, Net1 offers debit, credit and prepaid processing and issuing services for Visa, MasterCard and China UnionPay in China and other territories across Asia-Pacific, Europe and Africa, and the United States. Through Masterpayment, Net1 provides payment processing and enables working capital financing in Europe.
UEPS permits the Company to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. Net1’s UEPS/EMV solution is interoperable with global EMV standards that seamlessly enable access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.
Net1’s mobile technologies include its proprietary mobile payments solution – MVC, which offers secure mobile-based payments, as well as mobile banking and prepaid value-added services in developed and emerging countries. The Company intends to deploy its varied mobile solutions through its ZAZOO business unit, which is an aggregation of innovative technology companies and is based in the United Kingdom.
Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg Stock Exchange.
About Masterpayment (www.masterpayment.com)
Masterpayment was founded in Germany in 2010 and has subsidiaries in Germany, the UK and Liechtenstein. Masterpayment combines the technical abilities of a payment service provider with the commercial leeway of a credit card acquirer and the financing possibilities of a regulated fully licensed bank through its banking partner, Bank Frick.
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The Company may not actually achieve the plans, intentions or expectations disclosed in its forwardlooking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. Factors that might cause such differences include, but are not limited to: the risk that the Company’s business and the Masterpayment business will not be integrated successfully; the possibility that the expected synergies from the acquisition will not be realized, or will not be realized within the expected time period; disruption from the acquisition making it more difficult to maintain business and operational relationships; and other factors, many of which are beyond the Company’s control; and other important factors included in the Company’s reports filed with the Securities and Exchange Commission, particularly in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015, as such Risk Factors may be updated from time to time in subsequent reports. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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