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Net1 Acquires Remaining Shares in Masterpayment and Finalizes Earn-out Purchase Consideration
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
(“Net1” or the “Company”)
Net1 Acquires Remaining Shares in Masterpayment and Finalizes Earn-out Purchase
Consideration
Johannesburg, June 17, 2016 – Net1 (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 ChinaUnionPay 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.
Forward-Looking Statements
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 forward-looking 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.
Investor Relations Contact:
Dhruv Chopra
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com
Johannesburg
June 17, 2016
Sponsor:
Deutsche Securities (SA) Proprietary Limited
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