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Acquisition will add 26,000 U.S. ATMs, growing Cardtronics' global portfolio to 109,600 ATMs
Combination of Cardtronics and Welch ATM brings together complementary customer bases and sales capabilities
Merger to combine leading providers of ATM services to Walgreens and adds Rite Aid as a significant retail partner
Welch ATM CEO Jeff Hewitt to join Cardtronics leadership team
HOUSTON, July 21, 2014 (GLOBE NEWSWIRE) --
Cardtronics, Inc. (Nasdaq:CATM) today announced a definitive agreement under which it will acquire Welch ATM for $160 million. Upon completion of the transaction, the combined company will support a global portfolio of 109,600 ATMs, including 92,500 conveniently located retail ATMs in the United States.
The combination of Cardtronics and Welch ATM will bring together two top-performing retail ATM services providers, with complementary customer bases and sales capabilities. Cardtronics has demonstrated success placing ATMs with national chain retailers and forming ATM branding relationships with national and international financial institutions. Welch ATM has established its core strength around delivering ATM services to mid-market retailers and ATM branding to mid-tier banks and credit unions. The combined business will be positioned to accelerate revenue growth, achieve cost synergies, create additional value for its retailer and financial institution customers, and drive shareholder value.
A combined Cardtronics and Welch ATM organization will also bring together the leading providers of ATM services to
Walgreens. The collective Walgreens portfolio totals 5,100 ATMs and a presence in a significant portion of the retailer's nationwide footprint. Additionally, Welch ATM will add 3,100 company-owned,
Rite Aid-located ATMs to Cardtronics' roster of premier retailer locations.
Cardtronics Chief Executive Officer Steve Rathgaber said:
"We believe this acquisition creates great value for all of our stakeholders. As a combined company, we can offer an expanded product set for customers and consumers, plus improved operational efficiencies. For our shareholders, by combining Cardtronics and Welch ATM, we will broaden our client mix and further our customer diversification. In doing so, we expect to drive higher earnings per share within the next 12 months."