ATM operator Stargroup has moved into the switching and processing market, with the acquisition of Indue Ltd's ATM services division.Stargroup announced yesterday it had signed an exclusive memorandum of understanding with Indue to purchase assets relating to its national ATM switching, settlement, processing, telecommunications and ATM reseller business.Indue works with 70 ATM deployers operating 1700 ATMs and 1350 modems processing around 12 million transactions a year.Stargroup will pay A$6.5 million in cash for the business. The acquisition, which is expected to be completed by December, will be debt funded.Stargroup emerged in 2015 when it merged with the ATM supplier and fleet operator iCash Payments, taking over its listing on the Australian Securities Exchange.Later that year it acquired another ATM operator, Cash Plus Australia, and in June this year it acquired CashmyATM.The company said its ATM revenue would rise from $7.5 million to $11.6 million, with that figure expected to increase to $15 million in the 2017/18 financial year.Indue said in a statement that the divestment would allow it to focus on card processing, financial crime prevention services and New Payments Platform services.It will continue to provide services to customers under a wholesale arrangement with Stargroup. These services include: transaction clearing and switching via existing arrangements with First Data; settlement services; web portal management services; and billing and rebate management services.Indue will also provide a range of services to Stargroup. These include telecommunications services, helpdesk support and hire purchase facilities.Stargroup chief executive Todd Zani said these arrangements were transitional. Stargroup would progressively take over some of those services, while it would continue to work with Indue on others.