ATLANTA -- InComm, a provider and distributor of prepaid products, has signed an agreement to acquire PRE Holdings Inc., a U.S. prepaid distributor and processor.
The acquisition of PRE marks the second recent acquisition by InComm, which announced the acquisition of KwikSystems LLC and Prepaid Enterprises LLC earlier this month. InComm plans to integrate the newly acquired businesses to further enhance its position in the U.S. prepaid industry, as well as support its international growth in both the United Kingdom and Canada.
PRE, an Norcross, Ga.-based company, delivers a variety of prepaid products, including prepaid wireless airtime, long-distance cards, gift cards, music downloads, ringtones and online games and the Mio Money Prepaid MasterCard to more than 60,000 retail locations including grocery stores, discount dollar stores, travel centers and convenience stores.
The acquisition of PRE is a very opportune and complementary addition to our business, which has experienced aggressive growth in both the U.S. and internationally since 1992, said M. Brooks Smith, InComm president and CEO. By integrating these businesses, it provides an opportunity to broaden our product portfolio for our existing clients, resulting in benefits to our product partners and end consumers. Our combined merchant base will touch small to large retailers. Streamlined operations and new product opportunities will further enhance our ability to react in a fast moving market environment.
The acquisition of PRE will accelerate InComm's retail presence to over 145,000 locations to become the leading U.S. prepaid distributor in terms of retail locations and prepaid transactions, the company said. The integration will enable InComm to offer the most comprehensive prepaid product range in the market, the company added, which includes its subscription activation products, full range of prepaid wireless programs, enhanced long-distance programs, music and game downloads, private-label and third-party gift cards and an array of financial services products such as the Mio Money Prepaid MasterCard and Vanilla Visa Gift Card.
By leveraging the best practices of both companies and integrating system platforms, it will enable us to not only bring more products but also a broader range of marketing and merchandising options and quicker execution at the store level, said Campbell B. Lanier III, PRE Holdings chairman and CEO. We are simply a much stronger company with our collective scale which will enable us to generate greater revenue for our retail and product partners going forward.
Following the closing of the transaction, Lanier will continue to serve InComm as a member of its board. I am very pleased that Cam will stay involved with InComm going forward, said Smith. This provides us with not only continuity, but a tremendous wealth of business and industry expertise to help guide InComm in the future.
Atlanta-based InComm said it expects the acquisition of PRE to be completed in approximately 45 days. Financing for the acquisition to be provided by JPMorgan Chase.
KwikSystems, Dallas, provides point-of-sale activation (POSA) systems, tracking and reporting for all types of prepaid products. Prepaid Enterprises, also based in Dallas, offers a range of prepaid products, including wireless airtime and handsets, gift cards, and prepaid debit cards.
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