In a footnote to an investor presentation slide, Green DotCorp. seems to have announced some big news.
On slide 14, of its “Today’s Green Dot” presentation, thecompany says it expects to pick up $78 million in Non-GAAP operating revenuefrom acquired programs in 2014-2105. Its note says “estimated revenue growthfrom AccountNow and Achieve Card Acquisitions.” A similar note is found onslide 15 regarding adjusted EBITDA.
The presentation can be found here: http://ir.greendot.com/phoenix.zhtml?c=235286&p=irol-irhome
With these deals, Green Dot would cement its position as thelargest independent prepaid card program manager in the United States. But whyis Green Dot so quiet about the deals?
AccountNow is one ofthe top five GPR program managers in the United States based on load. Thecompany has built a business of recruiting cardholders online. It has both Visaand MasterCard branded cards, and its cards are issued by MetaBank and TheBancorp.
Achieve Card is a smaller program manager that offers VisaCards issued by The Bancorp. The company got a little negative press when itwas fined by the Federal Deposit Insurance Corp. in 2013 for certain fees anddisputed claims. (More on that here: https://www.fdic.gov/news/news/press/2013/pr13045.html).
But the company was able to change its programs and make restitution so thatits cardholders were made whole. Theacquisition would be additive to Green Dot’s portfolio.
So the deals seem like they would be a positive developmentfor a company that wants to bulk up in its core business. Investors have beentwitchy about Green Dot Stock, but in general it seems the market would welcomethis news.
No formal announcement of the deals have been made. WhetherGreen Dot will say anything more is unclear. For now, it is fair to say thatthe prepaid industry has shifted.