- Published: 18 January 2012
- Written by Editor
SASSA Awards National Tender to Net1
Net 1 UEPS Technologies, Inc. ("Net1" or the "Company") (NASDAQ: UEPS - News)(JSE: NT1) today announced that its wholly owned subsidiary, Cash Paymaster Services (Pty) Ltd ("CPS") has received a Letter of Award from the South African Social Security Agency ("SASSA") for the provision of payment services for social grants in all of South Africa's nine provinces for a period of five years. The tender award is subject to the usual execution of a service level agreement by January 31, 2012.
"We are overjoyed by the SASSA tender award and very proud of the confidence that SASSA has placed in our company and technology," said Dr. Serge Belamant, Chairman and CEO of Net1. "Our biometric UEPS/EMV technology has enabled us to provide SASSA with a comprehensive, cost effective solution for the payment of approximately fifteen million monthly grants to ten million recipients in rural and urban areas and we are committed to provide the grant recipients and the South African government with the highest level of service and security. I would like to thank all of our employees and partners for their invaluable contribution towards the tender outcome. This tender award emphasizes the strategic importance of our South African operations and provides further confirmation of our business plan that will afford us, together with our Black Empowerment initiatives that we have been formalizing during the last few years, with the launch pad for our future growth in Africa and other developing economies," he concluded.
Herman Kotze, CFO of Net1, commented: "Given the magnitude of the SASSA tender award, we expect a significant impact on the group's financial affairs when the contract period commences as a result of new volume and pricing, additional costs, capital expenditure and additional contractual obligations. These may have different financial effects in the short-term relative to the long-term benefits to the group. We will be able to provide more detailed guidance regarding the financial effect of this tender award when the service level agreement has been concluded and hope to provide such detail during our next scheduled earnings call on Friday, February 10, 2012."
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System, or UEPS, to facilitate biometrically secure real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa, Republic of Korea, Ghana and Iraq. In addition, Net1's proprietary Mobile Virtual Card technology offers secure mobile payments and banking services in developed and emerging countries while its MediKredit and XeoHealth subsidiaries provide its proprietary 5010 and ICD-10 compliant real-time claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary listing on the JSE Limited.
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties, including the risk of our being able to successfully conclude a service level agreement in a timely manner. A discussion of various factors that cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no obligation to revise any of these statements to reflect future events.
Net 1 UEPS Technologies, Inc.
Vice President of Investor Relations