nFinanSe Agrees to Acquisition By AccountNow, Inc.
nFinanSe Inc. (Pink Sheets: NFSE) (www.nFinanSe.com) today announced that it had entered into a letter of intent to be acquired by AccountNow, Inc., a leading provider of general purpose reloadable (GPR) prepaid cards in the direct-to-consumer sales channel.
The acquisition is subject to the satisfactory completion of due diligence, the preparation and approval of definitive documents, First California Bank approval and certain other customary closing conditions. The transaction is expected to close in phases, with the initial phase on November 30, 2012, after which nFinanSe Inc. will become a wholly-owned subsidiary of AccountNow, Inc.
“We are very excited about the proposed acquisition of nFinanSe. We believe that combining our direct-to-consumer expertise and nFinanSe's knowledge of the retail store channel, we will become a truly integrated, multi-channel provider of GPR cards,” said Jim Jones, Chief Executive Officer of AccountNow, Inc.
As currently contemplated, only holders of nFinanSe Inc. Series F Convertible Preferred Stock will participate in any proceeds from the acquisition, and no proceeds are expected to be available to holders of any other series of nFinanSe's Convertible Preferred Stock or its Common Stock.
About nFinanSe Inc.
nFinanSe Inc. is an innovative financial services company and provider of stored value and prepaid card solutions headquartered in Tampa, Florida. nFinanSe has developed the nFinanSe Network™, a secure, reliable value load and activation platform that connects with retail merchants and other value load stations located throughout the United States. For more information, visit www.nFinanSe.com.
About AccountNow, Inc.
AccountNow, Inc. (www.accountnow.com) headquartered in San Ramon, California, is a leading provider of solutions for consumers who choose not to have traditional banking relationships. AccountNow's innovative, money saving prepaid cards give consumers an alternative to traditional checking accounts, access to the financial and payments systems and FDIC insured deposits.
The nFinanSe Visa® Reloadable Prepaid Card is issued by First California Bank, Rancho Mirage, CA, Member FDIC, pursuant to a license from Visa Inc. The nFinanSe Discover® Reloadable Prepaid Card is issued by First California Bank, Rancho Mirage, CA, Member FDIC, pursuant to a license from Discover® Network. Discover® and the Discover acceptance mark are service marks used by First California Bank under license from Discover Financial Services. All cards funds are insured by the FDIC in accordance with the FDIC's applicable terms and conditions.
“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements based on nFinanSe Inc.'s, or, the Company's current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words and include statements regarding the anticipated benefits of the Company's products and the anticipated roll out of the Company's products. Forward-looking statements in this release are based on information available to the Company as of the date hereof. The completion of the proposed investment transaction on the terms described in this release, or at all, is subject to risks and uncertainties associated with results of the investor's due diligence review, successful negotiation of the definitive documentation, willingness of the investor to proceed with the transaction, ability to obtain regulatory and shareholder approvals as well as factors relating to the Company's business, which include the Company's ability to execute its business strategy and other risk factors. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Lisa Fitzgerald, 813-367-4400