TRANSACT TECHNOLOGIES SIGNS LETTER OF INTENT TO ACQUIRE PRINTER COMPANY WITH $40 MILLION IN ANNUAL SALES

Send to friend

TransAct Technologies Incorporated a leading producer of transaction-based printers for customers worldwide, today announced the signing of a letter of intent under which TransAct will acquire the transaction printer and printhead business known as TPG, a division of ATSI Holdings Inc. (formerly known as Axiohm Transaction Solutions). TransAct expects the acquisition will add at least $40 million in revenue and be accretive to earnings.  The all cash transaction is valued at approximately $23 million and is expected to close in the third quarter of 2004.  The transaction is subject to TransActs completion of final due diligence and the negotiation of definitive agreements.

 

Bart C. Shuldman, Chairman, President and CEO, said, We look forward to welcoming TPGs customers and employees into the TransAct family.  Our businesses are complementary from a financial, business and strategic standpoint.  While we are both well-established companies in the point of sale (POS) and banking markets, we serve different customers and geographic markets.  Traditionally, TransAct has focused on small to medium sized value-added resellers (VARs), distributors and end users, domestically, while TPG has focused on larger VARs and OEMs, and on the international markets.  In addition, the acquisition will further broaden our product offerings by adding products such as the hybrid (or combo) printer and printhead business that we dont have today, making TransAct a one-stop shop in every segment of the POS and banking markets.  As a result, the acquisition will significantly expand our presence in the global POS and banking markets and bring us closer to our long-term goal of capturing 20% market share by providing all of our customers with a broader product offering and additional support resources.

 

Importantly, from a financial standpoint, this acquisition is expected to increase our sales to over $100 million, continued Shuldman.  While we have not completed our final due diligence, we believe that the acquisition could add at least $0.20 to earnings per share in 2005. We expect to fund the acquisition through a revised loan agreement with our bank.

 

TPG, a division of ATSI Holdings, Inc., is a leading designer, manufacturer, and marketer of commercial transaction printers and components for both retail point-of-sale (POS) and banking systems.  TPG has built a strong reputation as an innovator of transaction printers and impact printheads, leveraging its design capabilities to develop and introduce new products in close collaboration with its customers. TPGs products include single station thermal printers, hybrid thermal/impact printers, impact banking/gaming printers and impact printheads.  TPG has customer support and manufacturing facilities in Chicago, New York, California and Tijuana, Mexico.  For further information, visit TPG's web site located at www.TPGPrinters.com.

 

 

Investor Conference Call / Webcast Details

TransActs management will host a conference call to discuss the acquisition at 5PM EDT 2nd June.  The conference call-in number is 973-582-2706.  A replay will be available from 8PM EDT on June 2 through 12AM EDT, June 9.  The replay number is 973-341-3080.  The confirmation number is 4814015.  Investors can access the conference call via a live webcast on the Companys website at www.transact-tech.com.  A replay of the call will be archived on that website for one week.

 


 

About TransAct Technologies Incorporated

TransAct (Nasdaq: TACT) designs, develops, manufactures and markets transaction-based printers under the ITHACA and MAGNETEC names. In addition, the Company markets related consumables, spare parts and service.  The Companys printers are used worldwide to provide receipts, tickets, coupons, register journals and other documents.  TransAct focuses on two core markets: point-of-sale (POS), and gaming and lottery.  TransAct sells its products to original equipment manufacturers, value-added resellers and selected distributors, as well as directly to end-users.  The Companys product distribution spans across the Americas, Europe, the Middle East, Africa, the Caribbean Islands and the South Pacific.

Comments (0)

Add a Comment

This thread has been closed from taking new comments.