Net 1 UEPS Technologies Surges after Contract Win with SASSA

Shares of alternative payment systems company Net 1 UEPS Technologies UEPS are seeing much strength after the South African Social Security Agency awarded the company with a new contract. Net 1 UEPS Tech 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. Herman Kotze, CFO of Net 1, 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." Currently, shares of Net 1 are trading over 27% higher at $8.57.