CPI Card Group to Sell Canadian Subsidiary to Allcard Limited
November 16 2018 - 9:00AM
Business Wire
Divestiture is Next Step in Strategy to
Optimize CPI Footprint and Sharpens Focus on Core Secure Card
Business and Key Strategic Priorities
Allcard to Provide Seamless Transition for
Customers and Employees
CPI Card Group Inc. (Nasdaq: PMTS; TSX: PMTS) (“CPI Card Group”
or the “Company”), a global leader in financial and EMV® chip and
dual interface card production and related services, today
announced that it has entered into a definitive agreement to sell
its Canadian subsidiary to Allcard Limited (“Allcard”), a provider
of non-secure card solutions to the gift and loyalty sectors.
“Divesting our Canadian subsidiary is the next strategic step
toward optimizing CPI’s footprint and is consistent with our
previously announced plan to better position ourselves to serve
customers by focusing on our core businesses including secure card
manufacturing, personalization, instant issuance and prepaid,” said
Scott Scheirman, President and CEO of CPI Card Group. “With this
transaction, we streamline our operations and allocate resources to
provide customers with unmatched solutions, innovation and
world-class service.”
Mr. Scheirman continued, “We thank the talented employees of our
Canadian subsidiary for their contributions to CPI’s success, and
we wish them all the best in their future endeavors.”
“At Allcard we've always positioned our business to be a "one
stop shop” and invested accordingly,” said Mark Brown, President of
Allcard Limited. “With the acquisition of CPI’s Canadian
subsidiary, we are bolstering our offerings and continuing to
ensure we have the equipment, experience and technical knowhow to
deliver top quality Canadian-made products on time - every
time.”
The transaction is expected to close within the first several
months of 2019, subject to customary approval and other closing
conditions. Some portion of the Canadian secure card business is
expected to transition to the Company’s operations in the U.S., and
the remaining secure card business will transition out of the
Company before the completion of the transaction.
About CPI Card Group
CPI Card Group is a leading provider in payment card production
and related services, offering a single source for credit, debit
and prepaid debit cards, including EMV® chip and dual interface,
personalization, instant issuance, fulfillment and mobile payment
services. With more than 20 years of experience in the payments
market and as a trusted partner to financial institutions, CPI’s
solid reputation of product consistency, quality and outstanding
customer service supports our position as a leader in the market.
Serving our customers from locations throughout the United States
and Canada, we have a leading network of high security facilities
in the United States and Canada, each of which is certified by one
or more of the payment brands: Visa, MasterCard, American Express,
Discover and Interac in Canada. Learn more at
www.cpicardgroup.com.
EMV is a registered trademark or trademark of EMVCo LLC in the
United States and other countries.
About Allcard Limited
Personalized customer solutions, dynamic product innovation and
an all-in service offering have positioned Allcard Limited as a
leading gift and loyalty card producer in North America. President
Mark Brown has assembled a team of industry specialists with proven
experience and a sincere desire to connect with customers.
Established in 2002 and based in Cambridge, ON, Allcard has branch
offices in the GTA, Manitoba and BC. Allcard's Carteplus division
provides French-focused services to Quebec and the Maritimes.
Alongside conventional card and collateral print and fulfillment
capabilities, Allcard offers in-house design services and a
full-colour, in-line digital print platform which brings cards to
market within days. With an eye to the future, Allcard has invested
in environmental stewardship, e-commerce solutions and flexible,
customized inventory management. This approach has allowed Allcard
to acquire and retain some of the most prominent loyalty card
issuance programs in North America, and to serve an ever-changing
gift card market sector. For more information, please contact Mark
Brown as indicated below.
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version on businesswire.com: https://www.businesswire.com/news/home/20181116005008/en/
CPI Card Group Inc.Investor RelationsWilliam Maina(877)
369-9016InvestorRelations@cpicardgroup.comOrMedia
RelationsMedia@cpicardgroup.comAllcard LimitedMark
Brown519-650-9515mark@allcard.ca