Cardtronics Acquires Assets of ATM Network

Wed Aug 8, 2012 7:30am EDT

* Reuters is not responsible for the content in this press release.

HOUSTON, Aug. 8, 2012 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) today announced that its wholly owned subsidiary, Cardtronics USA, Inc., has acquired all the assets of ATM Network, Inc., including its merchant contracts, customer relationships, online store and web properties, and its Minnesota-based head office. ATM Network's management team and employees are expected to join Cardtronics. The transaction was signed and closed on August 7.

ATM Network—founded in 1996, privately owned and headquartered near Minneapolis—provided ATM services to independent merchants, primarily on the local level. Expanding beyond its upper Midwest origins, ATM Network grew into a nationwide company, boasting a merchant client count topping 6,000. With that client base drawn from all 50 United States plus Washington, D.C., ATM Network had more than 6,200 (largely) merchant own-and-load ATMs under contract.

Addition of ATM Network Assets

Including its online store and direct-to-merchant sales engine, the assets of ATM Network deliver a complement to Cardtronics' existing independent merchant ATM business, which has historically filled its sales pipeline through indirect sales efforts, primarily through a network of dealer relationships. By acquiring ATM Network's assets, Cardtronics adds to an already sizeable portfolio of merchant own-and-load ATMs under contract, gains an established and sizeable direct-to-merchant sales team and brings greater balance to Cardtronics' dealer and direct merchant ATM sales outreach initiatives. ATM Network's legacy business relationships enhance Cardtronics' ability to more rapidly acquire independent merchant clients and a greater share of the collective U.S. ATM market.

"A year ago, we acquired Access to Money, bringing a new level of scale to our merchant own-and-load business. This move complemented our high-profile ATM placement and bank branding model, which has made Cardtronics so successful," said Steve Rathgaber, chief executive officer, Cardtronics. "This year, we've strengthened our commitment to the merchant line of business by acquiring the assets of the premier merchant own-and-load operation in the market today, ATM Network. We're particularly excited about the merchant leadership team that will be joining us through this deal. Cardtronics has a very strong management team. With this move, it just got even stronger."  

Evolution of Cardtronics Merchant ATMs

Phil Rock—founder, president and chief executive officer of ATM Network, as well as independent ATM industry pioneer—has joined Cardtronics as part of this transaction, assuming day-to-day leadership of Cardtronics' merchant ATM business. Supported by a management team drawn from both Cardtronics and ATM Network talent, Rock will manage and coordinate both dealer and direct-to-merchant sales efforts as Cardtronics expands its presence in the merchant-owned ATM market.

The acquisition of ATM Network's assets pushes Cardtronics' merchant-owned ATM count to 21,300 machines under contract. Including both company- and merchant-owned ATMs, the Cardtronics ATM estate now numbers 61,200, giving the company increased scale efficiency opportunities for its in-house ATM transaction processing platform, as well as in vendor relationship management.

Transaction Details

Financial terms of the acquisition are not material to Cardtronics and have not been disclosed.

Financial Guidance

The contribution of acquired ATM Network assets are expected to have a non-material impact on Cardtronics' consolidated results—revenues and adjusted net income—for 2012. Accordingly, regarding full-year 2012 anticipated results, Cardtronics reiterates the financial guidance previously issued along with its second quarter financial results on July 31.

Cardtronics anticipates the full-year impact of this transaction will add annualized revenue of $7 to $9 million.

About ATM Network

ATM Network supports more than 6,200 ATMs situated in a wide variety of locations including convenience stores, grocery stores, restaurants, bowling centers, community banks, retail centers, medical facilities, government buildings and other types of businesses in all 50 United States. For more information about ATM Network, visit www.atmnetwork.net.

About Cardtronics (Nasdaq:CATM)

Making ATM cash access convenient where people shop, work and live their lives, Cardtronics is at the convergence of retailers, financial institutions, prepaid card programs and the customers they share. Cardtronics owns/operates more than 61,200 retail ATMs in U.S. and international locales. Whether Cardtronics is driving foot traffic for America's most relevant retailers, enhancing ATM brand presence for card issuers or expanding card holders' surcharge-free cash access on the local, national or global scene, Cardtronics is convenient access to cash, when and where consumers need it. Cardtronics is where cash meets commerce.

The Cardtronics logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=991

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give the Company's current expectations or forecasts of future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. The forward-looking statements contained in this release include, among other things, statements concerning projections, predictions, expectations, estimates or forecasts as to the Company's business, financial and operational results and future economic performance, and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. These statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following:

  • the Company's financial outlook and the financial outlook of the ATM industry;
  • the Company's ability to respond to recent and future regulatory changes;
  • the Company's ability to respond to potential reductions in the amount of interchange fees that it receives from global and regional debit networks for transactions conducted on its ATMs, including a recent change by a major global network that will result in lower fees earned by the Company on transactions processed over this network;
  • the Company's ability to provide new ATM solutions to retailers and financial institutions;
  • the Company's ATM vault cash rental needs, including potential liquidity issues with its vault cash providers;
  • the continued implementation of the Company's corporate strategy;
  • the Company's ability to compete successfully with new and existing competitors;
  • the Company's ability to renew and strengthen its existing customer relationships and add new customers;
  • the Company's ability to meet the service levels required by its service level agreements with its customers;
  • the Company's ability to pursue and successfully integrate acquisitions;
  • the Company's ability to successfully manage its existing international operations and to continue to expand internationally;
  • the Company's ability to prevent security breaches;
  • the Company's ability to manage the risks associated with its third-party service providers failing to perform their contractual obligations;
  • the Company's ability to manage concentration risks with key customers, vendors and service providers;
  • changes in interest rates and foreign currency rates; and
  • the additional risks the Company is exposed to in its U.K. armored transport business.

Additional information regarding known material factors that could cause the Company's actual performance or results to differ from its projected results are described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. You should not read forward-looking statements as a guarantee of future performance or results. They will not necessarily be accurate indications of the times at or by which such performance or results will be achieved. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.

Cardtronics and Allpoint are registered trademarks of Cardtronics, Inc.

All other trademarks are the property of their respective owners.

Contact Information:

Cardtronics — Media Cardtronics — Investors
Nick Pappathopoulos Chris Brewster
Director – Public Relations Chief Financial Officer
832-308-4396 832-308-4128
npappathopoulos@cardtronics.com cbrewster@cardtronics.com
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.