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Stargroup Ltd Completes Acquisition And Expands Network To 350 ATM's

Stargroup Ltd (ASX:STL) has now wrapped up the acquisition of the 95 ATM Network from Cash My ATM, taking its total network to 350 machines.

The Stargroup ATM fleet has now grown by 350% in 12 months.

Todd Zani, CEO and executive chairman, commented: "Stargroup is excited to complete 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 is part of our commitment to becoming the largest ASX listed ATM and payment services provider in Australia.

"Stargroup and CashmyATM are aligned in our thinking in so much as we both take a highly disciplined approach to site selection and choose only quality sites that can offer good ROI's on capital."

Financial benefit of acquisition

The acquisition of CashMyATM will allow Stargroup to process some 2.9 million transactions each year and current annualised revenue of greater than $7.5 million.

The company has said it expects this figure to increase via further organic growth in the 2017 financial year to well over $11 million.

The CashMyATM Network has ATMs deployed in Queensland, New South Wales, Tasmania and Victoria.

Consideration for the acquisition has been satisfied by the payment of $4,008,615 in cash and the issue of 8,908,060 new fully paid STL shares, at $0.05 per share, which is above the current market price.

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