Loopt is a pioneer in mobile user interface design, real-time
location-based mobile rewards marketing, and geo-location application
technology
MONROVIA, Calif.--(BUSINESS WIRE)--Mar. 9, 2012--
Green
Dot Corporation (NYSE: GDOT), a provider of widely distributed,
low-cost banking and payment solutions to a broad base of U.S.
consumers, has entered into a definitive agreement to acquire Loopt,
Inc., of Mountain View, California. The transaction is expected to
close by the end of the first quarter of 2012 and is subject to
regulatory approvals and other closing conditions.
The acquisition of Loopt will provide Green Dot with a number of key
strategic benefits that are expected to a) improve customer acquisition
and retention of its current prepaid debit card products, b) drive the
adoption of new banking and payment products targeted to new segments of
consumers, and c) provide the opportunity for Green Dot to become a
leader in mobile wallets, rewards and payment solutions at retailers
nationwide. Furthermore, Loopt holds several patents that are applicable
to mobile marketing in the context of location-based messaging delivered
real-time to a mobile handset. Green Dot believes that these patents
will be important strategic assets as it pursues its mobile business
opportunities.
"We believe that mobile phones have the potential to change the way
people interact with their bank, control their money and pay for goods
and services,” said Steve Streit, Chairman and CEO of Green Dot. "Loopt
has innovative mobile technology, market leading mobile programming
capabilities and compelling intellectual property. Meanwhile, Green Dot
has a large customer base, a robust enterprise-level financial services
infrastructure and retail point-of-sale financial
transaction capabilities deployed at major retailers nationwide. When
Loopt’s assets are layered into Green Dot’s platform, we believe that a
significant opportunity emerges for Green Dot to become a large-scale
player in mobile technology solutions at the retail point of sale."
Loopt co-founder and CEO Sam Altman stated, “It’s been exhilarating to
see mobile become such a critical part of our collective daily lives. As
this technology truly reaches the masses, I believe we're going to see
the banking and payments industry fundamentally reshaped in a way that’s
better for everyone. My team and I look forward to being part of this
transformation and are eager to bring cutting edge mobile banking and
payment solutions to Green Dot's retail partners and Green Dot's
millions of current and future customers."
Upon closing of the transaction, Loopt’s current headquarters in
Mountain View, California will become the new Silicon Valley hub for
Green Dot’s mobile technology and product development team.
Green Dot will pay total consideration of $43.4 million in cash for the
company, which includes approximately $9.8 million to be set aside as a
retention pool for key Loopt employees. Green Dot expects this
transaction will result in approximately $14 million of incremental
operating expenses during the remainder of this year which will reduce
the Company’s previously guided 2012 full year adjusted EBITDA
accordingly. This amount includes the above mentioned retention
payments, ongoing salaries and benefits for retained Loopt employees,
wind-down expenses of current Loopt services and other expenses
associated with the costs of integrating Loopt’s technology into Green
Dot’s operating infrastructure.
Green Dot will provide further details about this acquisition, including
information on Green Dot’s mobile strategy, during its Q1 earnings call
on April 26, 2012.
About Green Dot Corporation
Green Dot is a publicly traded (NYSE:GDOT) bank holding company
regulated by the Board of Governors of the Federal Reserve System. The
Company provides widely distributed, low cost banking and payment
solutions to a broad base of U.S. consumers. Green Dot's products and
services include its market leading category of General Purpose
Reloadable (GPR) prepaid cards and its industry-leading cash transfer
network which are available directly to consumers online and through a
network of approximately 59,000 retail stores nationwide where 95% of
Americans shop. Green Dot is headquartered in the greater Los
Angeles area. For more details, visit www.greendot.com.
Forward-Looking Statements
This press release contains forward-looking statements, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. For example, statements regarding the key strategic benefits
that Green Dot expects from the acquisition, their expected impact on
Green Dot’s product and customer initiatives, the timing of closing and
the projected financial impact to Green Dot are all forward-looking
statements. Risks, uncertainties and assumptions include the possibility
that the acquisition does not close or that the companies may be
required to modify aspects of the transaction to achieve regulatory
approval; the market for the sale of certain products and services may
not develop as expected; that development of these products and services
may not proceed as planned; that customer acceptance of any new products
may not develop as expected; Green Dot’s limited experience with
acquiring companies and technologies, potential difficulties in
integrating operations of acquired companies and acquired technologies,
and any unexpected increases in Green Dot’s other operating expenses.
Additional risks and uncertainties are detailed in Green Dot’s filings
with the Securities and Exchange Commission, including its annual report
on Form 10-K, which is available on Green Dot’s investor relations
website at ir.greendot.com
and on the SEC website at www.sec.gov.
All information provided in this release and in the attachments is as of
March 8, 2012, and Green Dot assumes no obligation to update this
information as a result of future events or developments.
Source: Green Dot Corporation
For Green Dot Corporation
Investor Relations
Christopher
Mammone, 626-739-3942
IR@greendot.com
or
Media
Relations
Brian Ruby, 203-682-8268
Brian.Ruby@icrinc.com