Euronet Ukraine LLC - the Ukrainian arm of
Euronet Worldwide Inc.
) - announced an agreement to purchase 172 ATMs from UkrSibbank,
the third largest bank in Ukraine. Additionally, the agreement
allows the bank to participate in Euronet's shared ATM network
for 7 years.
This implies that the clients of UkrSibbank will be able to
use Euronet's ATMs under the same terms and conditions that are
applicable while using UkrSibbank's ATMs. Furthermore, the ATMs
being acquired are situated in off-bank locations with high
traffic, which makes these easily accessible and convenient
The sharing of network is expected to significantly enhance
Euronet's transaction volumes in Ukraine. Moreover, the deal will
ensure 100% growth in the company's market presence in the
country. It will also expand the company's foothold to include
the five largest cities of the country apart from Kiev, where it
already operates. Moreover, network sharing will bring down the
operating cost of the company.
UkrSibbank is a subsidiary of
BNP Paribas SA
) - a Paris-based banking and financial services company with
worldwide operations. The agreement has further cemented
Euronet's position as the fastest-growing Independent ATM
Deployer with the largest geographical expansion in Europe.
Euronet has market presence in 11 other European countries
such as Romania, Greece, Croatia, Poland, Germany, Czech Republic
and Bulgaria. In September 2012, the company expanded its
portfolio of Independent ATM Deployed (IAD) networks to Spain and
Further, Euronet acquired 116 ATMs from UkrSibbank in November
last year. The company is the sole operator of shared ATM network
in Ukraine. Apart from UkrSibbank, Euronet has network sharing
agreements with five other banks in Ukraine.
Euronet carries a short-term Zacks #2 Rank (Buy), which blends
well with our long-term 'Outperform' recommendation on the stock.
MoneyGram International Inc.
The Western Union Company
) carry a Zacks #5 (short-term Strong Sell) and #3 (Hold) Rank,
(BNPQY): ETF Research Reports
EURONET WORLDWD (EEFT): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
WESTERN UNION (WU): Free Stock Analysis
To read this article on Zacks.com click here.