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Cardtronics Canada Growth Continues With Acquisition

Stocks in this article: CATM

HOUSTON, Dec. 12, 2012 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM) today announced that its wholly-owned subsidiary, Cardtronics Canada, Ltd., has acquired Can-Do-Cash, Ltd., a privately held ATM services company headquartered in Ottawa and founded in 2000. Expanding the overall Cardtronics Canada ATM portfolio by 800 cash machines, Can-Do-Cash delivers accelerated growth primarily in Ontario and Quebec.

The Can-Do-Cash acquisition grows the total Cardtronics Canada fleet to 1,840 ATMs, a sizeable jump from the 600 ATM portfolio Cardtronics acquired in late 2011 with its purchase of Mr. Cash. Whereas Mr. Cash had its strongest presence in western Canada, Can-Do-Cash delivers an established merchant client base—including Ontario's well-known Pioneer Energy gasoline/convenience stores—in eastern population centers including Ottawa, Toronto, Montreal and Quebec City.

The founders and co-owners of Can-Do-Cash, Joseph Arrage and Tarick Karkache, will both join Cardtronics Canada, serving as vice president of Business Development and vice president of Operations, respectively.

"The acquisition of Can-Do-Cash fits well with our cost-efficient growth strategy for Canada, and gives Cardtronics a more geographically balanced presence and service network in Canada," said Steve Rathgaber, chief executive officer, Cardtronics. "Can-Do-Cash brings to Cardtronics Canada hundreds of new merchant relationships, a strong 'after-sales' service approach and a nearly flawless client retention rate since the company launched in 2000."

Cardtronics in Canada

Cardtronics first entered the Canadian marketplace with nearly 600 ATMs in late 2011 with its acquisition of Mr. Cash. Shortly thereafter, early in 2012, Cardtronics grew its Canadian operations in size and stature upon being named the exclusive provider of ATM services to all 7-Eleven convenience stores in Canada.

Subsequent to the 7-Eleven Canada ATM placement deal, Scotiabank entered into an ATM branding agreement with Cardtronics, covering all 470-plus Cardtronics-owned, 7-Eleven Canada-located ATMs. Further highlighting the strategic value of the 7-Eleven Canada locations, Cardtronics used those sites to introduce Allpoint Network—a Cardtronics affiliate and operator of the world's largest surcharge-free ATM network—into Canada earlier this year.   

Transaction Details

The acquisition of Can-Do-Cash increases Cardtronics Canada's ATM portfolio by 800 units. Approximately 200 of the 800 ATMs are company-owned, with the balance being owned by the merchant. Annual revenues associated with this acquisition are estimated at approximately $3 to $4 million U.S. dollars. Cardtronics signed and closed this transaction on Dec. 4.

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