Emida and Q Comm merge to create the premiere payment network in the Americas
Company focused on customer service and prepaid solutions to carriers, independent sales organizations, retail chains and independent retailers in the Americas and Caribbean
Salt Lake City and Foothill Ranch, Calif. – May 30, 2007 – Emida Technologies Inc. and
Q Comm International Inc., leading providers of electronic prepaid solutions, today announced they have agreed to merge and create one of the largest providers in the prepaid industry. The merger is expected to close on or after July 10, 2007.
By joining forces, the two companies will create the leading international prepaid and payment network with an extensive presence in key regions of the Americas and the Caribbean. The combination of Emida and Q Comm will result in a retail network of more than 21,000 prepaid points of sale in retail locations in 21 countries worldwide. They have a combined annual dollar payment volume in excess of $456 million, processing more than 34 million prepaid transactions annually.
Steven Ascher, director of re-boost distribution for Boost Mobile, commented, “As a partner to both Emida and Q Comm, we believe the merger will accelerate our ability to extend real-time replenishment services and programs to our channel and to our customers. We view the new, combined company as a key partner in developing our prepaid mobile business.”
Following the closing of the merger, the new company, which will do business as “Emida,” will focus its North American go-to-market efforts specifically on meeting the needs of independent sales organizations (ISOs), retail chains and independent retailers through a commitment to outstanding customer service and innovative product development.
“Retail merchants and major distributors, such as American Wireless, now have a large, financially stable company focused exclusively on our needs,” said Bruce Hallinan, vice president of prepaid services at American Wireless, a major partner of Emida. “It is important for us to have a provider with a long-term commitment, an extensive distribution network in the market and excellent customer service. The support and innovative products we get from Emida have allowed us to build a very strong partnership.”
The new company will provide an extensive product portfolio for prepaid wireless, calling cards and financial services for all customers. The combined product portfolio will include Emida’s market-leading, point-of-sale solutions for real-time top up, which enable wireless carriers and their customers to instantly replenish their accounts regardless of location. Emida has also pioneered cross-border payment solutions, which provide real-time payments and wireless account replenishment to suppliers and their customers across geographies in any currency.
Dennis Andrews, CEO of Emida, views the merger as combining two dynamic and similar companies that share the same goals and strategic direction. “While in some ways looking at each other is like looking in the mirror, we found that we have very complimentary strengths. By joining forces, we deliver a substantial mix of prepaid products, services and technology solutions that provide unique value across our various geographies and put us in a leadership position, particularly in the Americas and the Caribbean.”
Mike Keough, CEO of Q Comm, added that he sees the merger as a strategic move to capture market share in the prepaid market. “During the last couple of years, we have witnessed rapid growth and consolidation in the industry, in addition to an ever-increasing demand for better services and programs for various markets, including retail chains, independent retailers and the ISOs that service them. We believe this merger will position us at the forefront of serving these markets and will better enable us to capitalize on the accelerating growth in the market for all types of prepaid products and services.”
Andrews will continue to lead Emida as CEO, and Keough, as president of North America will have responsibility for the company’s operations in the United States and Canada. The combined management team of the merged companies possesses more than 200 years of aggregated professional experience in transaction processing networks, payment systems, information systems, customer support, international management, product innovation and financial management. The combined organization will continue corporate operations in both Foothill Ranch, Calif. and Salt Lake City.
For additional partner and customer perspectives on the merger and its impact on the industry, please see the additional quotes below. For more information, please visit https://emida.net and http://www.qcomm.com.
Emida is a leader in the global prepayment and value transfer market, operating in 18 countries in North, Central, and South America and the Caribbean. Emida POSA (point-of-sale activation) and value-transfer technologies allow domestic and international carriers and distributors to offer many types of prepaid products, including prepaid wireless, long distance, lottery and stored value. The company’s strategy is to build profitable, robust distribution networks for many prepaid products in multiple operating geographies and to introduce unique cross-border value transfer products between these geographies. For more information, please visit the company web site at www.emida.net or email email@example.com.
About Q Comm International
Q Comm International is a prepaid transaction processor that electronically distributes prepaid products from service providers to their customers at the retail point of sale.
Q Comm develops and offers advanced prepaid transaction processing platforms, support of various point-of-sale (POS) terminals, product management, merchandising, customer support and engineering. Q Comm systems replace traditional hard cards (also known as scratch cards or vouchers) that are costly to distribute and provide more comprehensive reporting and inventory management. Q Comm solutions are currently used by wireless carriers, telecom distributors, and various retailers to sell a wide range of prepaid products and services including prepaid wireless, prepaid phone cards, prepaid dial tone as well as prepaid and walk-in financial services for the un-banked and the under-banked. Visit us at http://www.qcomm.com for more information.
Additional Perspective on Merger
Best Telecom, ISO
“Having worked with Q Comm for three years, I feel this merger will create a significant new force in the prepaid market that is focused on delivery through ISOs and enhance the support that is needed for the independent channel,” said Rick Sallade, CEO at Best Telecom, “I look forward to seeing firsthand the positive developments that will result from the merger, including innovative product development, quality customer service and additional resources targeted at ISOs and their retail customers.”
Wireless Toyz, retail customer “We have benefited from the superior customer service that Q Comm provides,” said Jack Barbat, vice president at Wireless Toyz. “Our business has grown substantially with the prepaid products and services we have been able to offer customers with Q Comm. We see this merger as a way to expand the services we offer our customers and maintain the confidence that we will continue to be supported by a trusted partner and have access to leading products and processing solutions.”
Note: This press release is not intended as a solicitation to sell or buy any security.
The securities to be issued to Q Comm stockholders at the closing of the merger will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. An information statement will be distributed to shareholders of Q Comm to describe the material terms of the proposed merger as well as the business, financial condition, operations and risks associated with each of Debisys and Q Comm. A purchaser representative also will be appointed to represent the interests of Q Comm shareholders in connection with the merger. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities of Debisys.