BGS Merges With Net 1

Vienna, Austria (28.8.2008) - BGS Smartcard Systems today announced that it will be merging with Net 1 UEPS Technologies, Inc, a Johannesburg-based company that has acquired 80.1% of BGS Smartcard Systems AG. Net 1 is a leading provider of smart card technologies and systems that create secure and affordable transaction channels between the formal business sector and the "un-banked" and "under-banked" populations of developing countries.

Net 1 developed U.E.P.S. (Universal Electronic Payment System), a fully integrated payment, switching and settlement system suitable for multiple applications and services, whether deployed in undeveloped rural areas or highly developed first world markets.  Net 1 technology incorporates software, smart cards, payment terminals, back-end infrastructure and transaction security. These technologies are coupled with years of experience in developing, integrating and upgrading transaction systems.

“We are incredibly excited about the acquisition of BGS as it represents another significant milestone in the implementation of our international expansion strategy,” said Dr. Serge Belamant, Net 1’s Chairman and Chief Executive Officer.

The joint vision and strategic direction is to not only provide payment technology but also transaction based services far more cost effective and richer in innovation and functionality than any other system in existence today. BGS Smartcard Systems and Net 1 decided to join forces to further increase their respective market shares and to develop solutions for an even wider array of business requirements. This merger will not only result in an enhanced product portfolio, but will also allow the company to enter new geographic markets and increase the long term profitability of its business.
Leonid Delberg, Chairman and CEO of BGS, added, “Net 1, with its rich history of technological innovation, offers BGS a unique opportunity to expand the types of products and services that we can provide to our customers. We very much look forward to working with Serge and the rest of his team to capitalize on the synergies of our payment technologies.”