Euronet Worldwide, Inc., and Prosegur Cash Announce Joint Venture to Provide Comprehensive ATM Outsourcing Services to Latin America
LEAWOOD, Kan., and MADRID (May 20, 2021) – Euronet Worldwide (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, and Prosegur Cash (Spanish SE: CASH), a global Cash-In-Transit company with strong leadership in Latin America markets, announces an alliance between both parties, through the establishment of a joint venture, to provide comprehensive ATM outsourcing services and to own and deploy independent ATMs in the majority of the countries of Latin America. The implementation of the alliance in the different countries is subject, among others, to obtaining the relevant authorisations from regulators, including, in particular, relevant antitrust authorisations.
The joint venture will leverage on Euronet’s REN and REV payments technologies such as its cloud-based processing and connections to domestic switches and bank hosts for authorizations. Euronet also brings its extensive portfolio of ATM driving solutions to the partnership for value added ATM transaction services as well its advanced ATM fleet management system.
Prosegur Cash will deliver established relationships with banks throughout Latin America to the joint venture along with experienced cash in transit (CIT) services, first line ATM maintenance, ATM cash forecasting abilities, and extensive local market knowledge.
The combination of the two companies’ abilities is well positioned for outsourcing in a market that supports approximately 300,000 ATMs. Beyond the outsourcing opportunities, the joint venture also includes plans to own and deploy independent ATMs in select locations.
In addition to the local market knowledge of Prosegur Cash, Euronet also has first-hand experience with the promotion of new financial services in Latin America through the growth of its Ria Money Transfer and epay business segments in recent quarters in the region
“Prosegur Cash provides an immediate physical presence for Euronet in Latin America that fits well with our extensive experience in ATM deployment and management,” said Nikos Fountas, Euronet CEO EFT Americas, Europe, Middle East and Africa. “This joint venture will position us for rapid growth of our ATM outsourcing and network participation agreement initiatives as well as independent ATM placements that have served us well in other parts of the world.”
“This is an ideal partnership considering the abilities of each company,” said José Antonio Lasanta, CEO of Prosegur Cash. “I am looking forward to how quickly we are able to bring world-class ATM outsourcing services to the financial instititions of Latin America and provide convenient access to cash for the people of these regions, as cash remains as the consumers’ preferred means of payments and a critical element in these domestic economies”.
The joint venture involves a 51 percent investment from Euronet with Prosegur Cash investing 49 percent and will be jointly controlled by both parties.