Secure electronic payments group Prism Holdings has sold its majority stake in prepaid electricity specialist company, Contour Technologies, to minority shareholders for an undisclosed amount.
The move is cash and earnings neutral, and is in line with Prism`s strategy of leveraging its intellectual property to develop secure payment solutions that can be marketed globally.
Prism CEO Elvin Els says Prism will remain active in the pre-payment arena, and continue to supply products and services which are complementary to Contour`s niche focus area of the provision of robust prepaid electricity solutions to local authorities.
"Our investment in Contour Technology in 1999 has proved mutually beneficial for both companies. But the emphasis of Prism`s core focus has changed. The deal will therefore provides Contour Technology with the flexibility and opportunity it requires to strengthen its position in the utility pre-payment industry," he says.
Sagie Moodley, MD of Contour Technology says management is excited out the possibilities which could result from the move.
"We have spent considerable time and effort developing our pre-payment revenue management products and believe that the focused attention these products will now receive will provide tremendous advantages to our current and future customers," he says.
Included in the deal is a reciprocal arrangement whereby Contour Technology is the nominated technology provider for pre-payment expertise to Prism. This is complemented with Contour Technology acquiring distribution rights to the Prism secure module in the pre-payment utility market.
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