Johannesburg Securities Exchange listed Prism Holdings Limited (Prism) and Net 1 Applied Technologies South Africa Limited (Net 1 SA), a subsidiary of Net 1 U.E.P.S Technologies, Inc. (the Company), have confirmed that the two companies have been in negotiations resulting in Net1 issuing a firm intention to make a cash offer to Prism shareholders to acquire the entire issued share capital of the Trusted Transactions IP company for a consideration of R1.02 per Prism share.
Alvin Els, Prism`s Chief Executive Officer says that certain Prism shareholders, directors and employees have provided Net1 with irrevocable undertakings to accept the offer, in respect of their shareholding in Prism.
Net1 believes that the acquisition of Prism would provide the opportunity to:
* augment the Company`s management team, technical staff and development professionals;
* enhance the Company`s geographical penetration in South Africa via Prism`s terminals located in semi-urban stores, and thereby strengthen Net1`s merchant acquiring footprint;
* expand the Company`s product lines to include services such as Prism`s prepaid electricity and mobile phone business;
* increase the total number of transactions the Company processes and is capable of processing;
* amplify the Company`s technological advantage by providing the Company with access to Prism`s SIM card patented cell phone technology;
* expand the Company`s market reach into new geographical areas such as the Philippines, Indonesia and Malaysia through Prism`s existing operations; and
* take advantage of Prism`s smart card manufacturing capabilities.
Prism has expertise and experience in the provision of end-to-end EMV* solutions, m-Commerce technologies, GSM SIM mask technologies, and encryption products typically applied to high-end transaction processing for national retailers, banks and international network operators.
For Prism, this move will facilitate the company`s ability to further extend its reach into the African market through the universal electronic payment system (UEPS). With Net1 being an established NASDAQ listed company, they see the real value of Prism and are well placed to put funding behind the development of Prism IP.
It is the convergence of core technologies coupled with Prism`s global reach, experience and knowledge of working within the Asian market as well as clear synergies between the two companies that make Prism an attractive and very compelling acquisition for Net1.
According to Els, it is Net1`s intention to immediately fully integrate Prism as the deal would equate to the delisting of Prism Holdings Limited from the JSE. Net1 is also firm in that it intends to retain the staff, management, structures and processes of Prism in its entirety.
* EMV: The global standard for the design, security, and functionality of smart card terminals and applications, was developed by the major card associations in an effort to reduce fraud. Visa and MasterCard mandated that all new generation payment cards issued by the member banks must be EMV compliant. This means EMV compliant point of sale (POS) terminals must to be installed at retail outlets globally so that they can safely accept any EMV-type smart card from any EMV card issuer.
Prism Holdings (www.prism.co.za)
JSE-listed Prism Holdings Limited is a Trusted Transactions company with expertise in the area of secure electronic transaction technologies and services. The Group has a strong presence in South Africa and an established and expanding footprint across Africa and South-East Asia. Prism`s head office is located in Johannesburg, South Africa and has a regional office in Kuala Lumpur, Malaysia.
Prism has a proven track record in the delivery of own IP transaction technologies and end-to-end solutions tailored for the retail, utilities, banking, cellular telephony and petroleum industries. The Group has developed and implemented innovative payment-centric products that bridge the following technologies:
* Chip (Smart Card) and Wireless products: including and financial and telecoms software, GSM & 3G SIM cards, Secure Access Modules (SAMs), EMV (Europay, MasterCard & Visa) technologies, prepaid chip based telephone cards and mobile handset originated pre-paid airtime top-up vending systems and services.
* Encryption products: Incognito Transaction Security Modules (TSMs), security products ensuring transaction integrity, and third party products. * OEM Transaction Modules including Secure Payment Modules, PIN Entry Devices, card readers and EMV compliant Outdoor Payment Terminals (OPTs).
* Pay Point Technologies incorporating secure integrated single & multilane POS payment systems, EMV upgrades, payment software and FlexiLane/POS multi-lane chip payment solutions, VeriFone products and chip based pre-authorised payment system.
* EasyPay Services division, which manages the largest bank-independent financial transaction switch in Southern Africa. EasyPay incorporates support for credit and debit cards (EMV), bill payments, prepaid airtime recharge and utility services including prepaid electricity.
Net1 (www.net1ueps.com)
Net1 provides its universal electronic payment system, or UEPS, as an alternative payment system for the unbanked and under-banked populations of developing economies. The Company believes that it is the first company worldwide to implement a system that can enable the estimated four billion people who generally have limited or no access to a bank account to enter affordably into electronic transactions with each other, government agencies, employers, merchants and other financial service providers. To accomplish this, the Company has developed and deployed the UEPS. This system uses secure smart cards that operate in real-time but offline, unlike traditional payment systems offered by major banking institutions that require immediate access through a communications network to a centralized computer. This offline capability means that users of Net1`s system can enter into transactions at any time with other cardholders in even the most remote areas so long as a portable offline smart card reader is available. In addition to payments and purchases, Net1`s system can be used for banking, health care management, international money transfers, voting and identification.
Share