The ATM Solutions Group acquires BDB from Absa and Nedbank.
Transaction Capital’s wholly subsidiary The ATM Solutions Group, which is the largest independent provider of electronic payment services in Southern Africa, has announced that it has purchased 100% of the issued ordinary share capital of Electronic Funds Transfer (EFT) and payroll specialist, Business Data Bureau (BDB) - formerly owned by Absa Bank Limited (50%) and Nedbank Limited
(50%) - for an undisclosed sum.
The acquisition is effective from 25 April 2008.
Explaining the rationale behind the purchase of BDB, Steven Kark, Executive Chairman of the ATM Solutions Group, said the Group is "purchasing BDB combines scale of operations with proven technology, experienced staff and an existing customer base. This would have been difficult to replicate through organic growth."
BDB has been operating in the South African market as an EFT bureau for the past 35 years. The company has traditionally focused on offering debit order collections and credit EFT services, but recently identified payroll solutions as a key product which would provide access to additional EFT credits. In line with this strategy, the company developed i-Payroll, an Internet banking integrated payroll solution for small and medium businesses. It also launched another Internet-based payroll product called e-worx, catering to the "more sophisticated corporate client".
BDB processes payrolls in excess of R15 billion per annum and has a client base in excess of 2 200 companies spread across the different industries in South Africa.
BDB is headquartered in the Johannesburg CBD and has regional offices in Cape Town and Durban. The company employs 68 people.
The ATM Solutions Group currently operates the largest, third-party financial transaction switch in South Africa - and is widely acknowledged as the benchmark in the payments arena. It is a service provider to eight banks and a cross section of South Africa's leading retailers. It operates through six subsidiaries which share a common processing platform and back-office infrastructure. Industry-wide certifications and a national network of service engineers enhance the service.
Transaction Capital’s pedigree speaks for itself. It was born of the marriage between the leading independent operator in electronic payment services (The Kanderlane Group) and the top independent player in the consumer credit risk services and receivables management arenas (Jawmend Rossi). Pioneering investors in a broad range of alternative assets, Transaction Capital is one of the largest, truly independent service providers to the financial services sector in southern Africa. The Group comprises of 14 independently managed subsidiaries and employs more than 3000 people in 5 countries.
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