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Cadmus picks up GDC eftpos business

By Phil Boeyen, ShareChat Business News Editor

Thursday 31st May 2001

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Tech company Cadmus Technology (NZSE: CTL) plans to buy the eftpos arm of GDC Communications (NZSE: GDC).

Cadmus says the acquisition will increase its share of the national eftpos terminal market, add a new brand to its portfolio and create downstream opportunities for value added sales.

The price being paid for the business has not been disclosed.

Cadmus MD, Ian Bailey, says the GDC eftpos business currently operates outlets and distribution channels in Auckland, Northland and Wellington and, while looking to expand, will also be able to add the Keycorp and Cadmus range of eftpos products to its existing Hypercom range.

"This deal allows Cadmus to not only provide Keycorp and Cadmus terminals to a new base of customers, but also offer solutions based on Hypercom terminals to existing and potential clients.

"The agreement complements increased sales, growing market share and has been funded by the recent $7.4m financing facility, recently put in place to accelerate the growth of our equipment rental business."

Mr Bailey says on current performance alone the acquisition will have a positive effect on the company's bottom-line.

The business will operate as a stand-alone unit and current management and staff will be retained.

GDC says it is getting out of the eftpos business because it is a small, non-core activity which has become peripheral to its large contracting, telecommunications systems and iVASP businesses.

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