17 July 2018
Register today

Euronet Worldwide offloads UK business to management

20 January 2003  |  3551 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.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Euronet wins Indian ATM outsourcing contract

Euronet wins Indian ATM outsourcing contract

27 November 2002  |  2760 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
10257 views comments | 19 tweets | 30 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
9172 views comments | 5 tweets | 14 linkedin
Championing financial inclusion and helping the UnstoppablesChampioning financial inclusion and helpin...
8625 views comments | 3 tweets | 1 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
8547 views comments | 6 tweets | 14 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
7637 views comments | 1 tweets | 5 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job