LA NACIONAL - #1 MONEY TRANSMITTER TO THE DOMINICAN REPUBLIC
Established in 1984, La Nacional is a leading consumer-to-consumer brand for remittances to Latin America, primarily to the Dominican Republic. La Nacional provides money transfer services from 15 states in the U.S. including New York, New Jersey and Florida, three of the top six remittance sending states. With approximately half its distribution volume going to the Dominican Republic, La Nacional is the leading money transmitter to the Dominican Republic from the U.S.
La Nacional originates transactions through a network of over 800 sending agents and 65 company-owned stores located primarily in the Northeastern U.S. and terminates transactions through a payer network of over 10,000 locations worldwide. La Nacionalâs primary services include money transfer, bill payment and money orders.
In addition to gaining a significant share of the U.S. to Dominican Republic money transfer corridor, the La Nacional acquisition strengthens Euronetâs retail presence in the Northeastern U.S. including the tri-state area (New York-New Jersey-Connecticut). Together with La Nacional and RIA, the third-largest global money transfer company, which the Company agreed to acquire on November 21, 2006, Euronet expects to significantly expand both its sending and receiving locations worldwide.
âLa Nacional will be an excellent addition to the RIA money transfer business. Through La Nacional, we have the opportunity to gain a strong retail foothold in New York, the second-largest remittance sending state, and other neighboring states,â said Michael J. Brown, Euronet Worldwide Chairman and CEO. âBoth RIA and La Nacional have established high-potential money transfer corridors from the U.S. and internationally beyond the traditional U.S. to Mexico corridor. We see this as a strong advantage to growing our market share in other key regions. We are very excited to leverage the combined strengths of our money transfer business together with our Prepaid and EFT businesses to offer a compelling portfolio of cash-based product solutions to customers worldwide.â
Euronet also disclosed today that it is on target towards its previously announced goal of receiving the necessary regulatory approvals and satisfying other customary closing conditions to complete the RIA transaction during the first or second quarter of 2007. Euronet noted that, pending closing, RIA continues to show positive developments in its overall business including advancements in its non-U.S./ European money transfer business operations.
According to the Inter-American Development Bank, the Dominican Republic is one of the largest receivers of remittances in Latin America receiving approximately $2.7 billion in 2005. An estimated $1.6 billion (59%) of the total is sent from the U.S., primarily from New York. A survey conducted by Bendixen & Associates (2004) indicates that 90% of the approximately 1.0 million Dominicans in the U.S. reside in five states â New York, New Jersey, Florida, Massachusetts and Rhode Island. La Nacional is licensed and operating in all five of these states. Nearly 700,000 Dominicans in the U.S. send money home regularly and, according to the Bendixen report, roughly 80% of all money transfers to Dominican Republic go through a formal money transfer company.
Before the impacts of foreign exchange gains or losses, discontinued operations, share-based compensation charges, debt refinancing, and/or other non-operating or unusual items that cannot be accurately projected, the Company expects the acquisition of La Nacional to be accretive by $0.01 to $0.02 to Euronetâs 2007 diluted earnings per share. All financial information included in this release concerning La Nacional is based on unaudited seller provided financial information.