MALVERN, Pa. — January 25, 2016 — USA Technologies, Inc. (NASDAQ:USAT) ("USAT"), a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, today announced it has acquired the cloud-based content delivery platform, device platform and products, customer base, and intellectual property of VendScreen, Inc. of Portland, Ore., a leading developer of vending industry cashless payment technology. In addition to new technology and services, the acquisition adds a West Coast operational footprint for USAT, with a talented and experienced team, providing greater efficiencies in operational performance, expanded customer services, sales and technical support to USAT's increasing base of over 10,000 customers.
“If 2015 was the year of mobile payments, 2016 is going to be the year of consumer engagement. As consumers and retailers become more accustomed to cashless and mobile payments, companies want to leverage information provided through a cashless and mobile payments environment to engage with the consumer at point-of-sale,” said Stephen P. Herbert, chairman and chief executive officer, USA Technologies. “Whether it’s vending operators, retail, brand or technology partners, corporations are looking for ways to move beyond a simple transaction. Our acquisition of VendScreen’s technology further connects our partners and customers directly to the consumer at point-of-sale, and the possibilities are limitless. Whether it be through advertising, research, or loyalty, this technology will meet the demand of an increasingly customized retail experience and, we believe it will offer opportunities to engage with a consumer in ways that drives revenues. And we’re only just scratching the surface.”
USA Technologies acquired the assets for approximately $5.6 million, in cash, on January 15, 2016. USAT used approximately $2.6 million in cash on hand, with the balance funded by converting $3 million drawn from its line-of-credit into a term loan. VendScreen has more than 120 customers with approximately 4,200 active connections as of November 2015. Its devices have been certified, integrated and operable with USAT’s ePort® Service for approximately the past year.
VendScreen has developed what USAT considers to be the industry’s most advanced interactive media, content delivery system, and touchscreens for the self-service retail market. This includes a vending application that provides enhanced vendor management system (VMS) integration and consumer product information, including nutritional data, provided by the server side capabilities. The technology is NFC enabled and compatible with mobile wallets including Apple Pay and Android Pay, and supports instant refunds, couponing, advertising and real-time consumer feedback to the owner and operator. In addition, we believe the acquired technology has the potential to help grow customer loyalty, create return customers and drive recurring sales, via USAT’s MORE™ and Premier Services programs, which are helping the company shift the paradigm through new customer engagement services. This transaction provides USAT’s customers with access to a greater breadth of payment technology capabilities and consumer engagement services.
“We are excited to join forces with USA Technologies, as both companies share the vision of advancing payments technology for vending and unattended markets,” said David Grano, president and chief executive officer, VendScreen, Inc. “This acquisition will bring even greater resources to the marketplace, and will enable partners and customers to stay ahead of the technology curve. I am confident that this enhances USA Technologies’ leadership as one of the world's most innovative payments technology companies."
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