Published On: Tue, Jan 26th, 2021

NCR to acquire ATM operator Cardtronics for $2.5bn

Tagged with: | | | | | |

US software company NCR Corporation has signed a deal worth around $2.5 billion to acquire Cardtronics, a non-bank ATM operator and service provider.

As per the terms of the deal, NCR is offering $39 per share in cash to Cardtronics’ shareholders. The consideration includes the assumption of Cardtronics’ debt by NCR.

Before signing the deal with NCR, Cardtronics scrapped its previously announced $2.3 billion worth transaction signed in December 2020 to be acquired by an entity affiliated with funds managed by affiliates of Apollo Global Management and Hudson Executive Capital.

In accordance with the terms of the agreement signed with the investment firms, NCR paid the termination fee of $32.6 million on behalf of Cardtronics.

NCR to acquire ATM operator Cardtronics for $2.5bn

NCR to acquire ATM operator Cardtronics for $2.5bn. Photo courtesy of Fortinj1354/Wikipedia.org.

Edward H. West – CEO of Cardtronics said: “We are pleased to announce this compelling transaction, which will deliver superior value to our shareholders.

“This is a testament to the strength and value of Cardtronics, our talented team and customer base, and the complementary nature of our two businesses. Our Board determined that this transaction, which follows a comprehensive process and review of alternatives, is in the best interest of Cardtronics and our shareholders.”

Cardtronics is said to enable cash transactions at more than 285,000 ATMs in 10 countries across North America, Asia-Pacific, Europe, and Africa.

Michael D. Hayford – President and CEO of NCR said: “This transaction accelerates the NCR-as-a-Service strategy we laid out at Investor Day in December, further shifts NCR’s revenue mix to software, services and recurring revenue, and adds value for our customers.

“We have had a long-standing relationship with Cardtronics and its outstanding team. Its Allpoint network is highly complementary to NCR’s payments platform, and the combined company will be able to seamlessly connect retail and banking customers.”

Following the closing of the deal, Cardtronics will operate as a privately held company and its common shares will be delisted from public markets.

The deal, which is subject to regulatory approvals, approval by Cardtronics’ shareholders, and satisfaction of customary closing conditions, is expected to be wrapped up in mid-year 2021.

Related posts

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>