Travelers Express and Game Financial Corporation, two Minneapolis-based firms, completed a $51 million merger transaction which was announced earlier this fall. The transaction is effective today. The merger brings together two leading payment services companies which specialize in separate markets. Travelers Express, a subsidiary of Viad Corp (NYSE:VVI), serves retailers and financial institutions and Game Financial (NASDAQ:GFIN) serves the gaming industry.
“The merger fits very well into our corporate expansion plans, brings us a new market sector in the payment services field and will allow us to cross-sell Game products and services to our existing customers,” said Philip W. Milne, president and chief executive officer of Travelers Express. “It also will fuel Game Financial’s continued growth and bring new services to Game’s customers.”
The two companies will continue to maintain separate operations and management teams in Minneapolis, but Game Financial will operate as a Travelers Express subsidiary. Gary A. Dachis, Game Financial’s founder, president and chief executive officer will continue to run Game Financial.
Game Financial was founded in 1990 and provides cash access services including credit card advances, check cashing and ATM services in approximately 90 casinos across the nation. For the first nine months of 1997, the company’s revenues have increased 81 percent to $24.1 million.
Travelers Express’ parent company, Viad Corp of Phoenix, issued common stock in exchange for 100 percent of the outstanding shares of Game Financial. Game Financial stockholders received $10.75 per share of Game Financial stock for approximately $51 million.
Travelers Express, which has been owned by Viad since 1965, is the largest money order processor and second largest electronic bill payment processor in the nation. In 1996, it processed more than 750 million transactions, including official checks and share drafts for financial institutions.
Viad Corp is a $2.5 billion services company with businesses in airline catering, convention services and travel and leisure, as well as payment services.Details