23 October 2017

Euronet Worldwide offloads UK business to management

20 January 2003  |  3510 views  |  0 Euronet Worldwide offloads UK business to management

London-based private equity firm Bridgepoint has funded a management buy-out of Euronet Worldwide's UK independent cash machine subsidiary for $32.5 million cash.

Euronet says it sold the UK ATM network, which has been renamed Bank Machine, to repay debts. The transaction is expected to reduce the company's 2003 interest expense by approximately $200,000.

In conjunction with the sale, Euronet has signed a five-year outsourcing agreement to drive and process transactions from Bank Machine's network of 745 ATMs.

Under the acquisition, all 22 of Euronet's UK employees will remain with Bank Machine under managing director Ron Delnevo.

He says: "We are already a significant player in the growing independent operation and outsourcing of ATMs in the UK. We now have the funding in place to implement the rollout of significant numbers of ATMs each year, particularly in the 'through the wall' market."

Andrew Burgess, a director of Bridgepoint, says Bank Machine is expected to demonstrate organic growth: "There is significant potential for Euronet to benefit from the strategic withdrawal from ATM provision of the smaller UK banks and building societies who are likely to dispose of all or part of their estates in the short to medium term," he says.

He adds that he expects the Bank Machine network to increase to "in excess" of 900 ATMs by the end of 2003.

Bridgepoint says the UK ATM market has grown at around 8% annually to some 40,000 machines by the end of 2002 and forecasts that it is set to grow at 5-10% per annum.

Growth in ATM numbers has been mirrored by an increase in usage, with some 2.2 billion cash withdrawals made in 2001 alone.

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