NEW YORK, April 6, 2011 /PRNewswire/ -- NIS HOLDINGS CORP., (OTC QB: NISC), announced today that it has signed a definitive binding letter of intent with Alpha Card Technology, Inc. (ACT), a Gift Card solution firm, to acquire 100% ownership of ACT. In exchange for the 100% ownership interest in ACT, NIS Holdings will issue NIS Holdings shares to the shareholders of ACT. Due diligence has started, should everything be in order then the acquisition is anticipated to be concluded on or before May 16, 2011.
ACT is to become a premier provider of outsourced gift card processing across multiple platforms in the U.S. and Canada. ACT combines emerging technologies with the thriving coupon industry to provide consumers with unlimited mobile access to gift cards from their favorite businesses. ACT will offer customizable, physical gift cards to consumers and manage back-end processing of funds for its merchant clients. Merchants will create and order their desired gift cards directly through the Company's site, where consumers will also have the ability to monitor the balance of cards they purchase.
"ACT was a company that we had come across in our search for a technology to support our business plan, although they did not have the platform to cover our needs, they are a perfect fit as a value add-on for our core business. Through ACT we will be able to offer gift card solutions to Alpha Dynamic's small and small medium merchants, who cannot afford complex gift card solutions," said Vasiliki Anagnostou, secretary and Director of NIS Holdings.
Gift cards are incredibly popular in the U.S. due to the benefits they offer both consumers and retailers. Merchants offer gift cards because consumers tend to spend more money when using gift cards and usually buy more items at full price. Consumers appreciate the convenience and ease-of-use provided by gift cards, which make simple and easily obtained last minute gifts for family members and friends. By 2006, annual gift card sales were approaching $80 billion in the U.S. The global economic recession severely reduced consumer discretionary spending, however, leading to two years of decline in gift card sales. Last year was the first year of resurgent growth in this industry, with gift card sales increasing 5% to $91 billion. The average amount spent on gift cards by consumers today is $145.61, and experts predict the sector will reach $100 billion in annual sales by next year.
Vasiliki Anagnostou stated: "A fundamental element of NIS Holding's growth strategy centers on continually providing new and innovative products and services to our merchant base. By focusing attention on building a pipeline of products and services, NIS Holdings will continue to position itself for long-term growth. The acquisition of ACT will provide NIS Holdings with the unique ability to generate and capture sustainable new business for both subsidiaries beginning at the earliest stages of the service lifecycle."
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SOURCE NIS Holdings Corp.