Stargroup buys competitor, raises funds

Perth-based ATM machine supplier Stargroup has expanded its network with the acquisition of CashmyATM in a scrip and cash deal worth $4.5 million.

Stargroup will pay $454,000 in shares and $4 million in cash to wholly acquire CashmyATM and its 97 ATM machine network which spans across New South Wales, Queensland, the Northern Territory, Victoria and Tasmania.

The acquisition will boost Stargroup’s machine network to 365 units across the country.

As part of the deal, CashmyATM chief executive Jason Warren will become Stargroup’s national business development manager.

“Jason is a very experienced ATM operator and I believe that this quality acquisition and his experience will bring further value to our shareholders in the short and long term,” Stargroup chief executive Todd Zani said.

In order to fund the acquisition, Stargroup has raised $3 million through a private placement of 83.3 million shares at 3.6 cents each, and it also plans to raise a further $3 million through a rights issue on a one-for-six basis.

The raising was managed by Mr Zani, with assistance from PAC Partners.

Stargroup shares closed