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HOUSTON – Cardtronics Inc. will purchase independent ATM and financial technology services company Welch ATM for $160 million, it announced Monday. Upon completion of the transaction, the combined company will support a global portfolio of 109,600 ATMs, including 92,500 retail ATMs in the United States.
"We believe this acquisition creates great value for all of our stakeholders," stated Cardtronics CEO Steve Rathgaber. "As a combined company, we can offer an expanded product set for customers and consumers, plus improved operational efficiencies."
Cardtronics will purchase Welch through its wholly owned subsidiary Cardtronics USA Inc. The transaction is expected to close later in the third quarter.
The combination of Cardtronics and Welch ATM will bring together two top-performing retail ATM service providers, with complementary customer bases and sales capabilities, the company said. Cardtronics has found success placing ATMs with national chain retailers and forming ATM branding relationships with national and international financial institutions, while Welch ATM's core strength is in delivering ATM services to mid-market retailers and ATM branding to mid-tier banks and credit unions.
"The combination of Cardtronics and Welch ATM will create a larger, more diverse customer base, as well as offer a comprehensive range of ATM services across every market segment in the United States," said Welch CEO Jeff Hewitt. "And that means compelling new opportunities to expand our product sets, including ATM branding and retailer traffic-driving solutions, to deliver more value to our customers."
Following the acquisition, the combined business will be positioned to accelerate revenue growth and create additional value for its retailer and financial institution customers among other advancements, according to the announcement.
"For clients, adding Welch ATM to Cardtronics will bring together two well-regarded ATM services providers with significant operational expertise, scale and financial resources," Rathgaber added.