Cash Systems (AMEX:CKN)
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From Dec 2019 to Dec 2024
Cash Systems, Inc. (Amex: CKN), a provider of
cash-access solutions for the gaming industry, today announced a
definitive agreement to purchase Indian Gaming Services, a San
Diego-based cash-access provider to the gaming industry and a division
of Borrego Springs Bank, N.A. The purchase price is approximately $12
million and Cash Systems will use a combination of stock and cash for
the acquisition. Cash Systems expects to complete the acquisition in
the fourth quarter of 2005, subject to various terms and conditions,
and expects the acquisition to be accretive to earnings in 2006.
Indian Gaming Services (IGS) has served the casino community since
1997, distinguishing itself by its commitment to superior client
service and support. The company provides ATM, check cashing and
credit and debit services to 11 casino facilities. The acquisition
comes on the heels of a two-year-long effort by IGS to advance its
infrastructure and services to the forefront of the cash-access
industry.
Over the last two years IGS has purchased the top ATM switch on
the market, and has implemented a multiple-product ATM system,
offering ATM, credit, and debit POS. IGS' system meets the triple DES
PIN encryption requirements. The system also delivers enhanced
transaction speed, greater monitoring capabilities and supports
automatic Internet backup for ATMs. Indian Gaming Services has
completed numerous steps toward systems safety, speed and redundancy,
including the implementation of fault-tolerant servers for all
products, systems co-location, and the release of One-Click
processing. In addition, IGS has developed the eCash System, which
combines all cash-access services in one internet-based platform,
including a proprietary check-cashing application.
Michael Rumbolz, Chairman and Chief Executive Officer of Cash
Systems asserted that the move brings the best of the two companies to
a growing customer base. "The acquisition of Indian Gaming Services
presents a unique opportunity," Rumbolz said. "It integrates two
companies, each with very complementary technology, skill sets and
customer service philosophies. Additionally, this acquisition
significantly strengthens our presence in the California market and
enhances our technology offerings with the eCash System, our own ATM
system and a proprietary check-cashing solution," he said.
Anthony Pico, Chairman of the Viejas Band of Kumeyaay Indians said
that this transaction was well in keeping with the overall goals of
the tribal philosophy. "Owning a bank was a big step for an American
Indian tribe, and developing sophisticated services that met the needs
of tribal casinos was another exciting step forward for Borrego
Springs Bank," he said. "We understand that for our customers, casinos
are more than a business; they are a lifeline of the future of
communities. Our new relationship with a leader in the industry such
as Cash Systems takes our business to the next level."
Indian Gaming Services' current casino customers include:
-- Viejas Casino in San Diego, CA, which offers table games,
bingo, off-track betting and more than 2,200 slot machines
-- San Manuel Indian Bingo & Casino in Southern California, a
200,000-square-foot casino with more than 2,000 slot machines
-- Oneida Nation of Wisconsin, which operates three casinos
throughout the state
-- Cocopah Casino & Resort, located in Somerton, Arizona
-- Gold Country Casino & Hotel in Oroville, California.
"Importantly, we will be retaining all of the IGS team members as
part of the acquisition and we welcome them to the Cash Systems
family. We are very excited about the additional talent and expertise
they will bring to our combined businesses," concluded Mr. Rumbolz.
About Borrego Springs Bank, N.A.
Borrego Springs Bank, N. A. is a Native-American-owned, federally
chartered, financial institution dedicated to serving the needs of its
customers. The Bank is a proven Small Business Administration (SBA)
lender who strives for customer service excellence in all facets of
its operations. In addition to traditional banking services, Borrego
Springs Bank also features banking products specifically designed to
meet the needs of Native American tribes. The bank also has been
instrumental in assisting Native Americans in developing economic
opportunities and by financing tribal government projects. For
additional information please visit www.indiangamingservices.com or
www.borregospringsbank.com.
About Cash Systems, Inc.
Cash Systems, Inc., located in Las Vegas and Minneapolis, is a
provider of cash-access and related services to the retail and gaming
industries. Cash Systems' products include its proprietary cash
advance systems, ATMs and check cashing solutions. Please visit
http://www.cashsystemsinc.com for more information.
This press release may contain forward-looking statements,
including the Company's beliefs about its business prospects and
future results of operations. These statements involve risks and
uncertainties. Among the important additional factors that could cause
actual results to differ materially from those forward-looking
statements are risks associated with the overall economic environment,
the successful execution of the Company's plan of operation, changes
in the Company's anticipated earnings, continuation of current
contracts, gaming and other applicable regulations, and other factors
detailed in the Company's filings with the Securities and Exchange
Commission, including its most recent Forms 10-KSB and 10-QSB. In
addition, the factors underlying Company forecasts are dynamic and
subject to change and therefore those forecasts speak only as of the
date they are given. The Company does not undertake to update any
forecasts that it may make available to the investing public.