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GTECH Holdings Corporation Acquires BillBird S.A.
Acquisition of Leader in Electronic Bill Payment Services in Poland Furthers
GTECH's Commercial Services Strategy
WEST GREENWICH, R.I., Sept. 9 /PRNewswire-FirstCall/ -- GTECH Holdings
Corporation (NYSE:GTK) today announced that its majority-owned subsidiary,
PolCard S.A., has completed the acquisition of privately-held BillBird S.A.,
the leading provider of electronic bill payment services in Poland. The
business was acquired from BillBird's existing shareholders, IIF S.A.; BRE Bank
S.A.; and Alcyone Sp. z.o.o., a subsidiary of Ster Projekt S.A., for a total
enterprise purchase price of approximately US$6 million.
"The acquisition of BillBird not only offers GTECH an opportunity to deliver
significant value to our shareholders, but also provides a strategic complement
to our Commercial Services operations, positioning the Company for further
success in this market," said GTECH President and CEO W. Bruce Turner.
"Led by a solid entrepreneurial team with impressive domain knowledge, BillBird
has secured key processing contracts with approximately 75 percent of the
utility and telecommunications bar-coded bill issuers in Poland, and has
developed strong relationships with leading retailers across all trade styles,"
continued Mr. Turner.
In Poland today, the majority of bill payment transactions take place at Post
Office locations. Electronic bill payment services offer consumers the
convenience of paying bills at a network of retail locations they frequent on a
regular basis for other needs, and streamlines bill collections and cash
management for the utility customers. Through its PolCard subsidiary, GTECH
currently has approximately 2,500 retail locations offering prepaid mobile
services under the VIA(TM) brand [GTECH-owned commercial services brand], and
within these locations, there are currently more than 700 locations also
offering electronic bill payment services. PolCard, overall, has a nationwide
retail network of 34,000 points-of-access across Poland, making it the leading
debit and credit card merchant transaction acquirer and processor company in
the country.
"With over 2,000 -- and growing -- points-of-access in large grocery stores,
convenience stores, and gasoline stations, BillBird will dramatically increase
GTECH's Commercial Services market presence in Poland, as well as the number of
transactions processed and the resulting revenue," said BillBird President and
CEO Rafal Styczen.
Combining BillBird and PolCard enhances GTECH's market strategy of providing a
full product suite including debit and credit transaction processing, card and
ATM management services, electronic bill payments, and prepaid mobile phone
top-ups. Possessing a credible offering in all of these services will allow
GTECH to become a Commercial Services market leader in one of the most
significant markets in Central and Eastern Europe.
"BillBird's network is built on forward-thinking technology," said Mr. Turner.
"Their technology solution encompasses broad system and back-office
functionality, as well as comprehensive reporting and business intelligence
functions. This effective solution will likely offer a point of leverage in
future targeted markets, in addition to Poland."
Established in 2000, BillBird will operate as a subsidiary of PolCard and
maintain its office in Krakow, Poland.
GTECH expects the acquisition of BillBird to be earnings per share neutral in
its fiscal year 2005.
Certain statements contained in this press release are forward looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company identifies
forward looking statements by words such as "may," "will," "should," "could,"
"expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," or
similar words that refer to the future. Such statements include, without
limitation, statements relating to the prospects and financial outlook for the
Company, which reflect management assumptions regarding: (i) the future
prospects for and stability of the lottery industry and other businesses in
which the Company is engaged or expects to be engaged, (ii) the future
operating and financial performance of the Company (including, without
limitation, expected future growth in revenues, profit margins and earnings per
share), and (iii) the ability of the Company to retain existing business and to
obtain and retain new business. Such forward looking statements reflect
management's assessment based on information currently available, but are not
guarantees and are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated in the forward looking
statements.
These risks and uncertainties include, but are not limited to, those set forth
above, in the Company's subsequent press releases and on reports by the Company
on Forms 10-K, 10-Q and 8-K, and other reports and filings with the Securities
and Exchange Commission, as well as risks and uncertainties respecting: (i)
the potential impact of extensive and evolving government regulations upon the
Company's business; (ii) the ability of the Company to continue to retain and
extend its existing contracts and win new contracts; (iii) the possibility of
slower than expected growth or declines in sales of lottery and gaming goods
and services by the Company or the Company's customers; (iv) exposure to
foreign currency fluctuations; (v) risks and uncertainties inherent in doing
business in foreign jurisdictions; (vi) the relatively large percentage of the
Company's revenues attributable to a relatively small number of the Company's
customers; (vii) the possibility of significant fluctuation of quarterly
operating results; (viii) the intensity of competition in the lottery and
gaming industries; (ix) the possibility of substantial penalties under and/or
termination of the Company's contracts; (x) the ability of the Company to
respond to technological change and to satisfy the future technological demands
of its customers; (xi) opposition to expansion of lottery and gaming; (xii) the
Company's ability to attract and retain key employees; and (xiii) the
possibility of adverse determinations in pending legal proceedings.
GTECH, a leading global information technology company with over $1 billion in
revenues and more than 5,500 people in 45 countries, provides software,
networks, and professional services that power high-performance, transaction
processing solutions. The Company's core market is the lottery industry, with
a growing presence in commercial gaming technology and financial services
transaction processing. For more information about the Company, please visit
GTECH's website at http://www.gtech.com/.
Contact:
Robert K. Vincent
Public Affairs
GTECH Corporation
401-392-7452
DATASOURCE: GTECH Holdings Corporation
CONTACT: Robert K. Vincent, Public Affairs of GTECH Corporation, +1-401-
392-7452
Web site: http://www.gtech.com/