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Stargroup Ltd's Acquisition Improves Cash Flow And Profitability

Stargroup Ltd (ASX:STL) is now wrapping up the acquisition of CashMyATM, which has now delivered 95 ATM's.

The ATM's are located in Queensland, New South Wales, Tasmania, Victoria and the Northern Territory, processing circa 850,000 transactions annually.

The acquisition has swelled Stargroup's ATM's to over 365 machines processing around 2,900,000 transactions annually.

Stargroup's current annualised revenue is greater than $7.5 million, with the group forecasting an increase to $11 million next financial year through organic growth.

Consideration

The consideration payable is $4,454,027, with 10% to be paid in Stargroup shares above market at $0.05 (escrowed for 12 months) and balance in cash.

Stargroup has issued 8,908,060 shares at above market at $0.05 as part consideration for the acquisition.

Stargroup has paid $2,045,027 in cash and shares, with the $2,400,000 balance to be paid in cash out of the $3 million rights issue being completed this week.

Todd Zani, CEO and executive chairman for Stargroup, commented:

"Stargroup is excited to make this EPS accretive acquisition in its ATM division and have Mr Jason Warren join the Team.

"Mr Warren is an experienced ATM entrepreneur who has built a significant ATM network and this acquisition is part of our commitment to becoming the largest ASX-listed ATM and payment services provider in Australia.

"Importantly, this acquisition further improves our cash flow and profitability."

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