US-based ATM firm Cardtronics has signed an agreement to be acquired by the funds affiliated with Apollo Global Management and Hudson Executive Capital.
The deal was unanimously approved by the board of directors of Cardtronics.
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Under the transaction terms, Cardtronics will be acquired for a cash consideration of $35 per share. This represents a 35% premium on Cardtronics’ closing share price on 8 December 2020.
Hudson Executive and Apollo Funds disclosed a joint proposal to acquire Cardtronics on 9 December.
Including net debt, the agreed share price values Cardtronics at $2.3bn.
Subject to receipt of Cardtronics shareholders and regulatory approvals, the transaction is expected to close in the first half of next year.
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By GlobalDataFollowing the completion of the deal, Cardtronics will be delisted from NASDAQ and will become a privately company.
Cardtronics operates 285,000 ATMs across 10 countries, representing 10% of ATMs globally. However, it manages only 1% of withdrawals.
Cardtronics CEO Ed West said: “This announcement represents an exciting milestone for Cardtronics and is a testament to the strength and value of our company and the talented team we have in place.
“Our Board of Directors regularly evaluates all opportunities that have the potential to maximize value for shareholders.
“Following a comprehensive process and review of alternatives, which included discussions with strategic buyers and financial sponsors, the Board determined that this transaction is in the best interest of the Company and our shareholders.
“As a private company, supported by Apollo and Hudson Executive, we will have increased flexibility and resources to further invest in our business to accelerate growth and innovation.”
Apollo Partner Robert Kalsow-Ramos said: “Cardtronics is uniquely positioned within the increasingly complex, global payments ecosystem.
“We are excited to work closely with Ed and the broader team on this next phase of growth and are committed to delivering best-in-class service and innovative new products for Cardtronics’ valued partners.”
Hudson Executive managing partner and founder Douglas Braunstein said: “Cardtronics sits in the critical nexus between the cash and digital economies.
“Its broad trusted network of products and solutions provides significant value to financial institutions, leading retailers and its rapidly growing group of fintech partners.
“Together with our partners at Apollo, we are excited about the Company’s fundamental strengths and the continued value it can deliver to all stakeholders, and I look forward to continue working with the Cardtronics team.”
