Cardtronics, the operator of nonbank ATMs, and DirectCash Payments announced on Monday (Oct. 3) a definitive agreement in which Cardtronics will acquire DirectCash Payments.
In a press release announcing the deal, the companies said the purchase price is CAD$19 per share and includes the assets of First Data Corporation's Australian retail ATM and managed services ATM portfolio, which was acquired by DCPayments on Sept. 30. The deal is valued at around $460 million and includes about $53 million of debt DCPayments incurred to finance its purchase of the First Data Australian ATM portfolio. DCPayments is an ATM services provider with approximately 25,000 ATMs (inclusive of its First Data ATM portfolio acquisition) with primary operations in Australia, Canada and the United Kingdom. The combination will leverage Cardtronics' existing infrastructure and relationships and drive substantial operating synergies. The combined companies would serve approximately 225,000 ATMs in North America, Europe and Asia-Pacific.
"Our proposed combination with DCPayments will enhance our global presence by adding Australia as an anchor market in Asia-Pacific, in addition to New Zealand. It also would grow Cardtronics' existing ATM estates in Canada, the United Kingdom and Mexico,” said Steve Rathgaber, chief executive of Cardtronics, in the press release. “The combination will further position us to be the preferred global provider of ATM solutions to retailers and financial institutions. This acquisition would broaden our exposure to helping financial institutions reevaluate their physical presence as part of the bank transformation trends we are seeing worldwide."
According to the companies, the acquisition of DCPayments would establish Australia as a new platform for growth, alongside Cardtronics' existing presence in North America and Europe. DCPayments is a leading independent ATM operator in Australia, with approximately 11,000 ATMs owned or managed, inclusive of its recent First Data ATM portfolio acquisition. What’s more, the combination will result in Cardtronics managing more than 11,000 ATMs in Canada, while it would add more than 5,700 ATMs to the company's existing footprint in the United Kingdom.
"The combination of DCPayments and Cardtronics creates a unique platform that is ideally suited to maximize customer value for both organizations,” added DCPayments Chief Executive Jeffrey Smith. “There is a tremendous fit between our two organizations, and I am confident that the combined businesses will perform at even higher levels for customers and employees."