NCR, an American financial services provider that makes ATMs and self-service kiosks, has inked a definitive agreement to acquire rival ATM operator Cardtronics for an enterprise value of around $2.5bn, including debt.
Transactions details
As per the agreed terms of the all-cash deal, NCR will buy all outstanding Cardtronics shares for $39 a share.
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Earlier this month, NCR made an offer to acquire Cardtronics for $39 per share.
NCR president and CEO Michael Hayford 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. Simply put, we are better together.”
The deal already secured the clearance from the two companies’ boards.
It now awaits regulatory and shareholders’ approvals, and expected to close in the middle of this year.
The combined group anticipates between $100m and $120m in run rate operating cost synergies by the end of 2022.
NCR expects the takeover to add to its earnings in the first full year upon deal completion.
Cardtronics CEO Edward West 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.”
Last month, Cardtronics entered into an agreement to be acquired by entity affiliated with funds managed by affiliates of Apollo Global Management. In accordance with the terms of the new agreement, Cardtronics terminated the prior agreement and NCR paid $32.6m in termination fee.
