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HOUSTON –- Cardtronics Inc. completed its $160-million acquisition of Welch ATM, a retail ATM services company. The combined company now supports a global portfolio of 111,150 ATMs, including 93,350 retail ATMs in the United States.
The acquisition also brings together complementary customer bases and sales teams, positioning Cardtronics to accelerate revenue growth, achieve cost synergies and deliver greater profitability, according to a company release.
As part of the deal, Welch ATM founder and CEO Jeff Hewitt joined the Cardtronics leadership team as executive vice president, Financial Institution and Retail Sales and Relationship Management.
"Now that the transaction is completed, we're looking forward to integrating the two companies and delivering greater value to our customers through an even broader portfolio of ATM services and solutions, and to our shareholders through new revenue generation opportunities, operational efficiency and diversification of our client base," said Steve Rathgaber, CEO of Cardtronics.
Cardtronics will host its third-quarter earnings call on Oct. 29 and provide updated guidance at that time for 2014, including the expected contribution from this acquisition.
With the completion of the deal:
- Welch brings approximately 7,350 company-owned ATMs and 19,000 merchant-owned ATMs to the Cardtronics U.S. platform, and is expected to generate approximately $70 million in revenues in 2015.
- The acquisition creates a combined Walgreens portfolio that totals 5,100 ATMs and gives Cardtronics additional presence in a significant portion of the retailer’s nationwide footprint.
- Welch ATM adds 3,100 company-owned, Rite Aid-located ATMs to Cardtronics’ roster of premier retailer locations.
- Welch ATM brings to Cardtronics its Kahuna ATM Solutions division, which is a provider of ATM solutions for independent sales organizations.