JOHANNESBURG, SOUTH AFRICA, Nov 23 (MARKET WIRE) --
Net 1 UEPS Technologies Inc. ("Net1" or the "Company") (NASDAQ:
UEPS)(JSE: NT1) today announced that it has agreed to acquire 100% of
MediKredit Integrated Healthcare Solutions (Pty) Ltd ("MediKredit") for
ZAR 74 million (approximately USD 10 million) in cash. MediKredit is a
South African private company that offers transaction processing,
financial and clinical risk management solutions to both funders and
providers of healthcare. The transaction is expected to close in February
2010 when all regulatory approvals have been obtained.
MediKredit will provide Net1 the opportunity to expand Net1's technology
to another adjacent market and to cross-sell its payment technologies.
Management believes that the acquisition is strategically important for
the following reasons:
- MediKredit expands Net1's position as the leading independent
transaction processor in South Africa. Net1's market leadership in the
merchant processing space (through EasyPay) in South Africa will be
complemented by the acquisition of the South African market leader in the
healthcare transaction processing space. Management believes that the
South African government's stated intention to implement a national
health insurance program will create significant opportunities going
forward for MediKredit and Net1. MediKredit has 165 employees and
provides its services to approximately 5,000 health care providers in
South Africa (90% of total market size), 90 healthcare plans (60% of
total market size), 12 healthcare administrators (65% of total market
size) and processed 60 million transactions during 2008. MediKredit also
owns a globally unique national coding system for all pharmaceutical,
surgical and healthcare consumable products, the National Pharmaceutical
Product Index ("NAPPI") product suite, which has become the national
electronic standard for the transfer of information throughout the
healthcare delivery chain in South Africa.
- The acquisition will expand Net1's offering in some of its existing
markets like Ghana and Nigeria, where national health insurance schemes
have been introduced and where the UEPS platform and installed card base
could offer a complete national solution when combined with the
MediKredit system.
- MediKredit offers Net1 a small, strategic entry point for the US
healthcare administration market. The rapidly changing US healthcare and
administration industry provides a significant opportunity for the
introduction of MediKredit's technology. MediKredit's wholly owned
subsidiary in the USA, XeoHealth Corporation, recently launched its
proven Real Time Adjudication rules engine for the health care industry
in the USA.
- Enhancement of Net1's technology platforms and IT development
resources. Net1 and MediKredit both operate similar back-end systems,
which require skilled developers and technicians. The addition of
MediKredit would significantly broaden Net1's base of qualified
development employees.
- Increase in the depth and diversity of the Net1 management team with
the addition of experienced executives. The MediKredit management team
has significant experience in the healthcare industry, which has always
been a key focus area and potential market entry point for Net1.
"We are delighted to welcome MediKredit to the Net1 family as it presents
us with the ideal platform to expand our transaction processing
capabilities and provide an entry point for our technology in the rapidly
growing global health care market," said Dr. Serge Belamant, Net1's
Chairman and Chief Executive Officer. "We can now provide a turnkey
solution to healthcare providers, funders and governments that
encompasses transaction processing, rule administration and payment for
their members and citizens. We look forward to the contribution of the
highly respected MediKredit management team to the growth of our
business."
Wimpie du Plessis, CEO of MediKredit, commented: "The synergies to be
derived from combining Net1's payments processing expertise with
MediKredit's claims management solutions should lead to exciting
innovation possibilities within the South African healthcare environment.
Furthermore, being part of a NASDAQ listed company will provide XeoHealth
Corporation with a significant platform to make available our innovative
claims adjudication solutions for the US healthcare market and the other
international markets that Net1 currently operates in."
About Net1 (www.net1.com)
Net1 provides its universal electronic payment system, or UEPS, as an
alternative payment system for the unbanked and under-banked populations
of developing economies. The company believes that it is the first
company worldwide to implement a system that can enable the estimated
four billion people who generally have limited or no access to a bank
account to enter affordably into electronic transactions with each other,
government agencies, employers, merchants and other financial service
providers. To accomplish this, Net1 has developed and deployed the UEPS.
This system uses secure smart cards that operate in real-time but
offline, unlike traditional payment systems offered by major banking
institutions that require immediate access through a communications
network to a centralized computer. This offline capability means that
users of Net1's system can enter into transactions at any time with other
cardholders in even the most remote areas so long as a portable offline
smart card reader is available. In addition to payments and purchases,
Net1's system can be used for banking, health care management,
international money transfers, voting and identification.
Net1 also focuses on the development and provision of secure transaction
technology, solutions and services. Its core competencies around secure
online transaction processing, cryptography and integrated circuit card
(chip/smart card) technologies are principally applied to electronic
commerce transactions in the telecommunications, banking, retail,
petroleum and utilities market sectors. These technologies form the
cornerstones of the "trusted transactions" environment of Prism, a South
African based subsidiary of the company, and provide the Company with the
building blocks for developing secure end-to-end payment solutions.
About MediKredit (www.medikredit.co.za)
MediKredit is a privately held South African information technology
company based in Johannesburg. The company established its footprint in
healthcare as far back as 1941 and is one of the pioneers that changed
the face of healthcare claims processing by moving from a paper-based
environment to EDI, where medical claims are received electronically in a
realtime environment. MediKredit has developed and commercialized a suite
of software applications and processing services that enable on-line
real-time claims adjudication and processing of medical claims for
healthcare plans.
Private healthcare in South Africa is moving towards the empowerment of
patients by enabling them to take ownership of the financial and clinical
management of their healthcare plans. This has necessitated the need for
the implementation of managed healthcare principles, medical savings
accounts and member co-payments, where appropriate. MediKredit is
uniquely positioned to take advantage of this significant shift in the
provision of healthcare by providing on-line real-time processing and
automated claims adjudication processes.
MediKredit offers financial and clinical risk management solutions to
both healthcare plans and providers. On-line real-time adjudication of
medical claims allows patients and healthcare providers to have immediate
and accurate information on the financial and clinical impacts of, and
payment responsibilities, for healthcare services and products. The
company's copyrighted software allows for real-time claim adjudication
involving the submission of an EDI claim and receipt of a response with
the adjudication details within seconds. The MediKredit system allows for
real-time messaging with an immediate response to an enquiry within a
single, synchronous communication session.
The MediKredit System is compatible with any system and protocol and is
able to receive and exchange data with most operating systems. MediKredit
is able to manage transactions from all healthcare providers ensuring
consistent application of health care plan rules and benefits.
MediKredit's internally developed intellectual property is centered on
unique processes and expertise in real-time claims adjudication and
processing, which have been developed and utilized in real-time
environments for over 10 years. These processes are also backed by a set
of international quality management system standards and guidelines (ISO
9001:2000).
Forward-Looking Statements
This announcement contains forward-looking statements that involve known
and unknown risks and uncertainties. A discussion of various factors that
could cause the Company's actual results, levels of activity, performance
or achievements to differ materially from those expressed in such
forward-looking statements are included in the Company's filings with the
Securities and Exchange Commission. The Company undertakes no obligation
to revise any of these statements to reflect future circumstances or the
occurrence of unanticipated events.
Contacts:
Net1 UEPS Technologies Inc.
Dhruv Chopra
Investor Relations
+1-212-626-6675
dchopra@net1.com
www.net1.com
Copyright 2009, Market Wire, All rights reserved.
-0-
