Cadmus Acquires Finance Company

Cadmus Acquires Finance Company

Cadmus Technology Limited (NZX: CTL) will add another dimension to its operations, with the purchase of 49 percent of EFTPOS finance rental company Product Rentals Limited, with the potential of full ownership in 18 months.

Cadmus Managing Director Ian Bailey says the acquisition will provide an ongoing and renewable revenue stream from the NZ operations. He expects the ability to offer structured and flexible finance facilities to the market will also assist in expanding the sales reach both domestically and internationally.

The transaction complements Cadmus’ recent buy back of manufacturing operations and key intellectual property used in developing and manufacture of Cadmus’state-of-the-art payment solutions technology.

The move is another step on the Cadmus growth path, which includes recent purchase of key dealerships to promote Cadmus products, and according to Ian Bailey puts the company in an even better position to capitalise on the industry’s move towards the new EMV and DES3 standard.

Since its formation Product Rentals Limited has acquired a number of EFTPOS finance rental books and assets. In December 2004, the company purchased the terminal rental assets from Cadmus and also acquired rental books from Short Term Rentals Limited, and CTT One Limited and is currently in discussion with other EFTPOS rental companies.

The agreement is conditional on Product Rentals Limited completing the amalgamation of the various rental books, finalising financing agreements with long-term financiers and completion of due diligence of PRL by Cadmus.

It includes a put and call option to acquire the remaining 51 percent of Product Rentals Limited within the next 18 months.

The transactions will be settled by the issue of 3,274,289 Cadmus shares. A further 3.4M Cadmus shares will be issued if the put and call option is invoked.

ENDS

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, 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 Franklin’s.

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