Huge Debt Profile May Scare CWG, XLCMS from ATMC Acquisition

Potential buyers  of Automated Teller Machine Consortium (ATMC), the struggling Nigeria’s premier independent  ATM deployer (IAD) may change their minds following discovering that ATMC has unresolved multi-billion naira debt profile, Financialtechnology has learnt exclusively.
Financialtechnology had earlier reported that XL Cash Management Services Limited (XLCMS) and Computer Warehouse Group (CWG), West Africa’s largest ICT conglomerate was interested in the buy-out of the company. XLCMS is a professional Cash-In-Transit (CIT) management company established to offer integrated cash management services, covering cash processing and cash in transit services to Nigerian financial services industry.
The two companies allegedly discovered that ATMC owed a number of organizations which include member banks, ATM vendors, processors; communications links providers and CIT firms.
The mission of ATMC was to deploy and manage 1,200 offsite Automated Teller Machines (ATMs) under the trademark Quick Cash. The Consortium members are the leading banks in Nigeria that together control over 60% of the Nigerian banking market in terms of capitalization, asset and deposit base. These are Afribank, Diamond Bank, Fidelity Bank, First Bank, GTBank, Oceanic Bank, Union Bank, UBA, Wema Bank, and Zenith Bank.
After initial breakthrough with over 100 ATM installations across the country, QuickCash has been struggling as its member banks compete with it for the off-banking locations ATM deployment.
However, CWG’s decision to acquire ATMC may be connected with the recent Central Bank of Nigeria (CBN) directive that banks should remove all their off-banking locations ATMs and the company’s commitment in entering the e-payment touch-points end-to-end business. The company is already the largest ATM vendors in the West African region.
Recall that CWL Infrastructure was appointed a Wincor partner in February 2007 to focus not  only on sales but to use its wealth of experience garnered in the market to bring to bear on  better after sales service to the customer. CWG’s sister company, Expert Edge Software also brings more value to Wincor customers by customizing the Wincor software for better customer experience on their ATMs.
In addition, DCC Satellite & Networks Limited, the communications arm of CWG, which specializes in VSAT, Metropolitan Area Networks, Wide Area Networks, Local Area Networks and Systems Integration with a 24x7 helpdesk also provides communications link for ATM across the country.