Certegy to Acquire Game Financial Corporation
Broadens Cash Access Services in Fast-Growing Gaming Industry
ALPHARETTA, Ga., Feb. 20 /PRNewswire-FirstCall/ -- Certegy Inc. , a leading
global payment services provider, today announced that it has entered into an
agreement to acquire Game Financial Corporation for approximately $43 million in
cash. Founded in 1990, Game Financial provides debit and credit card cash
advances, ATM access and check cashing services in approximately 60 gaming
establishments nationwide. Game Financial is a subsidiary of Travelers Express
Company, which is owned by Viad Corp . The closing of the transaction, which is
subject to customary closing conditions, is expected to occur in early March
2004.
"We are very pleased to announce this transaction, which positions Certegy as a
leading provider of comprehensive cash access services to the gaming industry.
The acquisition of Game Financial is consistent with our strategy to generate
new growth opportunities through the development of new product offerings, entry
into new vertical markets and through targeted acquisitions," stated Lee
Kennedy, chairman, president and chief executive officer of Certegy Inc.
Certegy currently provides payroll check cashing services in over 6,000
locations throughout the United States. "The acquisition of Game Financial will
significantly broaden our cash access services beyond payroll check cashing, and
will increase our presence in the rapidly growing gaming industry," stated Jeff
Carbiener, senior vice president and group executive for Certegy Check Services. "There is a high demand for single source cash access solutions. Providing
these services is a natural extension of our check cashing product line," he
added.
"Game Financial has been a good investment for Travelers Express but no longer
fits within our core business," said Phil Milne, president and chief executive
officer for Travelers Express Company, Inc. "We are pleased with the sale to
Certegy and confident that Game Financial will continue to be successful under
this new management." Certegy expects this acquisition to add approximately $50 million in annualized
revenue. The Company anticipates the transaction to be neutral to its diluted
earnings per share in 2004, considering integration costs and lower share
repurchases than previously assumed. In 2005, the acquisition is expected to
add approximately $0.03 to diluted earnings per share.
About Game Financial Corporation Game Financial Corporation provides check cashing, debit and credit card cash
advance and ATM services to gaming establishments. The Minnesota-based company
is currently a subsidiary of Travelers Express Company, a world-wide provider of
payment services. Travelers Express is owned by Viad Corp (NYSE:VVI).
About Certegy Inc.
Certegy (NYSE:CEY) provides credit and debit processing, check risk management
and check cashing services, merchant processing and e-banking services to over
6,000 financial institutions, 117,000 retailers and 100 million consumers
worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong
global presence with operations in the United States, United Kingdom, Ireland,
France, Chile, Brazil, Australia and New Zealand. As a leading payment services
provider, Certegy offers a comprehensive range of transaction processing
services, check risk management solutions and integrated customer support
programs that facilitate the exchange of business and consumer payments.
Certegy generated over $1.0 billion in revenue in 2003. For more information on
Certegy, please visit http://www.certegy.com/ .
The statements in this release include forward-looking statements that are based
on current expectations, assumptions, estimates, and projectionsabout Certegy
and our industry. They are not guarantees of future performance and are subject
to risks and uncertainties, many of which are outside of Certegy's control, that
may cause actual results to differ significantly from what is expressed in those
statements. Among the factors that could, either individually or in the
aggregate, affect our performance and cause actual results to differ materially
from estimates provided include the following: satisfaction of conditions to
closing; potential integration issues following the acquisition; the untimely
loss of Game Financial Corporation's customers or suppliers; the potential
adverse effect of governmental actions; our ability to operate the business with
the same success as the current owners; and other risk factors identified from
time to time in our SEC reports, including, but not limited to, those described
in the section entitled "Risk Factors" in our 2003 Annual Report on Form 10-K
filed on February 17, 2004. DATASOURCE: Certegy Inc.
CONTACT: Mary Waggoner, VP - Investor Relations of Certegy Inc., +1-678-867-8004; or Angela Phoenix of Viad Corp, +1-602-207-5608, or Web site: http://www.certegy.com/
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