Stargroup acquires CashmyATM
Stargroup has made another acquisition in its bid to become a substantial player on the ATM market. The company announced on Friday that it had acquired CashmyATM, which operates a network of 97 ATMs.Following completion of the deal next month Stargroup will have an ATM fleet of 365 machines. Over the past year it has built up its fleet through mergers with iCash Payment Systems and Cash Plus Australia. Stargroup said the group would process around 2.9 million transactions a year. The company upgraded its 2016/17 revenue forecast from A$9.3 million to $11.4 million.CashmyATM has been in business for the past seven years. Its chief executive Jason Warren will join Stargroup as national business development manager.Stargroup is paying $5.5 million for CashmyATM, with the consideration in the form of cash and Stargroup shares. Stargroup has made a $3 million private placement and a $3 million rights issue to fund the acquisition.The company is also moving into the point of sale terminal and merchant finance markets. Last November it signed a joint venture agreement with First Class Capital to market First Class's Retail Merchant Advance product, a cash advance. The cash advances are repaid from sales going through POS terminals. The amount of the advance is based on the historical average monthly credit and debit card sales going though the retailer's terminals.