International Cash Handling Business Acquired
De La Rue PLC
4 February 2000
DE LA RUE PLC
DE LA RUE ACQUIRES INTERNATIONAL
CASH HANDLING BUSINESS
De La Rue, the cash to secure transactions group, has
today announced that it is to purchase the international
cash handling activities of Ascom Autelca AG, the Swiss
telecommunications and service automation group. Cash
consideration is expected to be CHF 11.7m (£4.4m),
comprising estimated net assets of CHF 9.7m and goodwill
of CHF 2.0m, with a further payment of up to CHF 4.0m
dependant on certain performance criteria being met. The
transaction is expected to complete on 31 March 2000 with
the transfer of operations taking place on that date.
The closing is subject to receiving all necessary
regulatory approvals.
Ascom Banking Automation, based in Berne, is a leading
European supplier of teller and self-service cash
automation products. The Ascom cash handling operation
manufactures a range of note depositing and coin counting
equipment including the market leading Twin Safe Teller
Cash Recycler (TCR). Based on the unaudited management
accounts for the 12 months ended 31 December 1999, the
business had an estimated turnover of CHF 70m (£26.4m)
and recorded an operating loss of
CHF 5m (£1.9m) before interest. De La Rue has had an
agreement to distribute Ascom cash handling products in
certain European countries for several years.
Under the terms of the agreement, approximately 200
sales, service and research and development staff across
Europe will transfer to De La Rue Cash Systems division.
In addition, Ascom Autelca AG will continue to
manufacture the cash handling product range, including
the Twin Safe TCR, under licence from De La Rue for a 12
month period.
The integration of Ascom's cash handling activities will
reinforce De La Rue's position as the world's leading
branch cash solutions provider. The deal will enhance
the existing product range, service networks and
geographical spread, particularly in Europe with more
than 40% of Ascom's cash handling business activities
undertaken in Germany.
Commenting Pietro Armanini, managing director, Cash
Systems division, said:
'The acquisition of Ascom's cash handling activities will
significantly strengthen our branch cash solutions
business. As a leading supplier of banking technology and
cash processing automation the Ascom range complements
the existing De La Rue service and distribution coverage
and product portfolio. Cash Systems division can now
provide a unique solution to the banking industry that
covers the complete cash cycle within the modern branch
from self service to the front and back office, including
both hardware and software solutions. The Ascom Banking
Automation team will also add knowledge and considerable
technical expertise to our existing operations.'
There will be costs associated with integrating the Ascom
business (estimated at CHF 6.0m). It is anticipated that
it will take up to one year before the main benefits of
the acquisition show through in increased profits for the
division.
For further information please contact:
Paul Hollingworth Finance Director 01256 605307
Mark Fearon Head of Corporate Affairs 01256 605303
James Garthwaite Brunswick 0171 404 5959
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