Cardtronics (NASDAQ: CATM) today announced that its wholly owned subsidiary, Cardtronics USA, has acquired all the assets of ATM Network, including its merchant contracts, customer relationships, online store and web properties, and its Minnesota-based head office.
ATM Network's management team and employees are expected to join Cardtronics. The transaction was signed and closed on August 7.
ATM Network—founded in 1996, privately owned and headquartered near Minneapolis—provided ATM services to independent merchants, primarily on the local level. Expanding beyond its upper Midwest origins, ATM Network grew into a nationwide company, boasting a merchant client count topping 6,000. With that client base drawn from all 50 United States plus Washington, D.C., ATM Network had more than 6,200 (largely) merchant own-and-load ATMs under contract.
Addition of ATM Network Assets
Including its online store and direct-to-merchant sales engine, the assets of ATM Network deliver a complement to Cardtronics' existing independent merchant ATM business, which has historically filled its sales pipeline through indirect sales efforts, primarily through a network of dealer relationships. By acquiring ATM Network's assets, Cardtronics adds to an already sizeable portfolio of merchant own-and-load ATMs under contract, gains an established and sizeable direct-to-merchant sales team and brings greater balance to Cardtronics' dealer and direct merchant ATM sales outreach initiatives. ATM Network's legacy business relationships enhance Cardtronics' ability to more rapidly acquire independent merchant clients and a greater share of the collective U.S. ATM market.
"A year ago, we acquired Access to Money, bringing a new level of scale to our merchant own-and-load business. This move complemented our high-profile ATM placement and bank branding model, which has made Cardtronics so successful," said Steve Rathgaber, chief executive officer, Cardtronics. "This year, we've strengthened our commitment to the merchant line of business by acquiring the assets of the premier merchant own-and-load operation in the market today, ATM Network. We're particularly excited about the merchant leadership team that will be joining us through this deal. Cardtronics has a very strong management team. With this move, it just got even stronger."
Evolution of Cardtronics Merchant ATMs
Phil Rock—founder, president and chief executive officer of ATM Network, as well as independent ATM industry pioneer—has joined Cardtronics as part of this transaction, assuming day-to-day leadership of Cardtronics' merchant ATM business. Supported by a management team drawn from both Cardtronics and ATM Network talent, Rock will manage and coordinate both dealer and direct-to-merchant sales efforts as Cardtronics expands its presence in the merchant-owned ATM market.
The acquisition of ATM Network's assets pushes Cardtronics' merchant-owned ATM count to 21,300 machines under contract. Including both company- and merchant-owned ATMs, the Cardtronics ATM estate now numbers 61,200, giving the company increased scale efficiency opportunities for its in-house ATM transaction processing platform, as well as in vendor relationship management.
Financial terms of the acquisition are not material to Cardtronics and have not been disclosed.