May 1, 2007 – Press Release
FOR IMMEDIATE RELEASE
Tremont Capital Group Helps Facilitate Payment Alliance International’s Acquisition of NetBank Payment Systems
ATLANTA, GA – May 1, 2007 — NetBank, Inc. (NASDAQ: NTBK), parent company of NetBank, an online financial services provider and national prime mortgage lender, today announced a transaction involving NetBank’s ATM and merchant servicing operation. NetBank Payment Systems sold its principal operating assets and net working capital yesterday to PAI ATM Services, LLC, a subsidiary of Payment Alliance International, Inc. (“PAI’”). The assets consisted primarily of servicing contracts on more than 8,500 ATMs nationwide. The sales price for the assets totaled $18.0 million, resulting in initial cash proceeds of $16.5 million after adjustment for the estimated book value of the net working capital acquired.
Tremont Capital Group, Inc., a Boston, MA-based strategic planning and merger & acquisition advisory firm, introduced the parties and advised Payment Alliance International in connection with this transaction.
“The deal with PAI is a win-win proposition,” said Steven F. Herbert, CEO of NetBank, Inc. “PAI will be able to invest more in the operation and preserve the jobs of the talented team we had in place. In turn, we have generated significant new tangible capital. This money will prove important in our effort to maintain proper regulatory capital ratios and to protect shareholder value as we fight to get the company back on track financially through further restructuring or other alternatives.”
“This acquisition marks another important step in the growth and development of our company,” said John J. Leehy, III, CEO of PAI. “The employees at NetBank Payment Systems are highly qualified and have extensive experience in the ATM industry. The group also catered to an attractive base of merchant customers that fits in well with our company’s strategic focus and long-term objectives. We look forward to deepening the relationship with these customers over time through the addition of value-added services and solutions.”
“This acquisition is an outstanding addition to PAI’s portfolio and will enable the NetBank Payment Systems team to take its business into a new era,” said Sam M. Ditzion, President and CEO of Tremont Capital Group. “There will be many more mutually beneficial deals like this one as the ATM industry continues to consolidate.”
About Tremont Capital Group
Tremont Capital Group, Inc. is the leading provider of strategic planning and merger & acquisition advisory services to the ATM and related industries. To learn more about the services provided by Tremont Capital Group, please visit www.tremontcapitalgroup.com or call 617-482-8866.
###