Cash Now Corporation has executed an agreement in principle to acquire an ATM enterprise business and a factoring company for an undisclosed sum in cash and stock.
Over the next couple of weeks Cash Now management and their advisors will be conducting due diligence on both of these two separate private companies, which have been unnamed, for viability, revenue generation and client base.
The ATM business looks extremely attractive to us, says Kevin Price, Cash Now’s CEO. He added, we have been provided with unaudited statements of this company with sales of over $1.5 million in 2005. This company does not collect interchange fees from the processor and those fees could be substantial to Cash Now’s bottom line.
With regard to the factoring company, Mr Price added: Cash Now is a sub prime lender and this acquisition would open the door for us to service both the B2B and B2C market place. We see factoring as a payday loan transaction for businesses, so it is a natural fit for us.