Euronet Worldwide, Inc., an electronic payments provider, has executed a stock purchase agreement to acquire Los Angeles-based RIA Envia Inc.
Euronet will acquire 100 percent of Ria’s outstanding common stock for USD380 million in cash, USD110 million in Euronet stock (approximately 7.9 percent of Euronet’s 30 September 2006 diluted weighted average shares outstanding using Euronet’s closing share price on 20 November 2006) and certain contingent value and stock appreciation rights.
“Ria, through its family of brands, has a compelling core business in the traditional money transfer corridor between the U.S. and Latin America together with its European and Asian presence,” says Michael J. Brown, the Chairman and CEO of Euronet Worldwide. “The strategic opportunity in this acquisition is the integration of Ria’s overseas operations in 13 countries and large payer network into Euronet’s international operations. This portion of Ria’s network dovetails nicely with Euronet’s portfolio of banking clients to whom we provide transaction processing services across approximately 9,000 ATMs and our prepaid mobile top-up network comprising 265,000 points-of-sale across 157,000 retail locations. The geographic, economic and relationship synergies are substantial and position Euronet to provide remittance services across many markets around the world.”
“We are enthusiastic about the opportunities available to expand operations in our current international footprint, to develop new corridors and to access a strong prepaid product group as a result of joining the Euronet team,” adds Juan C. Bianchi, the President and CEO of RIA Envia, Inc. “Aside from the obvious market opportunities, we believe the Ria and Euronet operating philosophies and cultures will fit together nicely.”