- Vortiv (VOR) subsidiary Transaction Solutions International (TSI) executes a five-year agreement with the Central Bank of India (CBI) for an additional 2,550 ATMs
- TSI management estimates full deployment of the ATMs will result in an increase of $25 million to $30 million in annual revenue and $11 million to $13 million in annual EBITDA
- The agreement between TSI and CBI, which expands TSI’s owned and managed network of ATMs by about 20 per cent, can be extended by CBI for a further two years
- Vortiv says it hopes the CBI deal will help it pay a full-year dividend in FY23
- Shares were trading 15.4 per cent higher today at 3 cents each
Vortiv (VOR) subsidiary Transaction Solutions International (TSI) has executed a five-year agreement with the Central Bank of India (CBI) for an additional 2,550 ATMs.
It also comes with the possibility of a further 625 ATM licences being issued at CBI’s discretion over the next year.
According to TSI management, full deployment of the ATMs under the new agreement will result in an increase of between $25 million and $30 million in annual revenue and between $11 million and $13 million in annual EBITDA.
Vortiv said it hopes the CBI deal will help it pay a full-year dividend in FY23, while retaining some free cashflow for growth initiatives and new projects.
“This is one of several initiatives that myself and my fellow directors were able to progress with TSI management during our recent visit to India,” Chairman Nicholas Smedley said.
“TSI now has significant revenue and earnings growth locked in for FY23 as a result of this new agreement with the Central Bank of India.”
Vortiv said the agreement between TSI and CBI, which expands TSI’s owned and managed network of ATMs by about 20 per cent, can be extended by CBI for a further two years.
VOR shares were trading 13.5 per cent higher at three cents each at 11:31 am AEDT.