Private equity firm Carlyle Group has announced that it will acquire from De La Rue its global provider of cash handling technology, Cash Systems, for an enterprise value of GBP360m.
Private equity firm Carlyle Group has announced that it will acquire from De La Rue its global provider of cash handling technology, Cash Systems, for an enterprise value of GBP360m.
Cash Systems designs, manufactures and services specialist equipment to sort, count, authenticate and dispense notes and coins for financial and retail institutions. The group has three divisions providing branch teller automation products, desktop cash handing products and automated teller machine technology for equipment manufacturers.
Basingstoke, England-headquartered Cash Systems installed the world’s first ATM at a Barclays Bank branch in London in 1967, and today one in ten of the world’s ATMs has a Cash Systems mechanism inside. More than 5,000 banks in more than 60 countries use Cash Systems handling solutions. The firm has 14 offices worldwide and leading market positions in North America, Spain, Germany, France and the UK.
‘Cash Systems is pleased to welcome Carlyle as a shareholder in this rapidly expanding business,’ says managing director Tracey Graham. ‘We have an ambitious growth strategy that reflects escalating demand for our innovative cash management and security solutions.
‘Carlyle’s sector expertise, global support and financial acumen will prove very valuable to Cash Systems as we develop our operations as a standalone business, while maintaining a strong relationship with our former parent De La Rue, the world’s foremost commercial security printer.’
Andrew Burgess, a managing director of the Carlyle Group, says: ‘Cash remains the preferred global payment method with 50 per cent all payments made with notes and coins. Its ease of use and universal acceptance mean that the circulation of cash is projected to increase significantly.
‘Cash Systems’ market leadership reflects the strength of its technology platform and reputation for quality, accuracy and service. The market for its products continues to grow as clients seek enhanced efficiency, customer service and security, and respond to regulation.’
The investment has been made through Carlyle Europe Partners III, the firm’s third European buyout fund, which closed in 2007 with EUR5.35bn in commitments. The transaction, which is subject to customary closing conditions, received debt financing from Lloyds TSB, Société Générale, Calyon and GE Corporate Finance.
The Carlyle Group is a global private equity firm with USD81.1bn under management committed to 60 funds. The group invests in buyouts, venture and growth capital, real estate and leveraged finance worldwide, focusing on aerospace and defence, automotive and transportation, consumer and retail, energy and power, financial services, healthcare, industrial, infrastructure, technology and business services, and telecommunications and media.
Since 1987, the firm has invested USD43bn of equity in 774 transactions for an aggregate purchase price of USD230bn. The Carlyle Group employs more than 1,000 people in 21 countries, while its portfolio companies have more than USD87bn in revenues and employ more than 286,000 people worldwide.
