Cardtronics (NASDAQ: CATM) today announced that its wholly-owned subsidiary, Cardtronics Canada, Ltd. has acquired Mr. Cash ATM Network, Inc.
With its acquisition of Mr. Cash — a privately-held company headquartered in Lethbridge, Alberta and founded in 2005 — Cardtronics has expanded its international presence into Canada. Financial terms of the acquisition were not disclosed.
From an immediacy standpoint, Mr. Cash delivers to Cardtronics an established ATM deployer presence in the Canadian landscape and a successful track record selling into the local merchant marketplace. By the numbers, Cardtronics enters Canada with hundreds of existing merchant relationships, the ownership/operation of nearly 600 ATMs across the country, plus an established sales channel partner network focused on the Canadian marketplace.
Taking a longer view, acquiring Mr. Cash's operations provides Cardtronics — an established international ATM service provider with extensive operations in the United States, United Kingdom, Caribbean and Mexico — an enhanced global presence to better serve the ATM needs of multi-national chain retailers and financial institutions.
"Acquiring Mr. Cash and simultaneously crossing the border north into Canada is the definition of common sense expansion and writes the next chapter of Cardtronics' international story," said Steve Rathgaber, chief executive officer, Cardtronics. "In Canada, Cardtronics gains a new market that is nearby and home to many well-known merchants and financial institutions operating on both sides of the border."
In addition to driving accelerated growth from Mr. Cash's legacy operations with an enhanced ability to fund new business opportunities, Cardtronics plans to bring its community-based business model to Canada. Complementing Mr. Cash's roster of existing merchant relationships, Cardtronics will also look to place Cardtronics-owned and -operated cash machines in Canada's most relevant retailers, thereby creating high-visibility ATM branding opportunities for financial institutions.
"Backed by the local experience of Mr. Cash's management team, Cardtronics is executing an entrance into Canada that is both time- and cost-efficient," said Mike Clinard, president, Global Services, Cardtronics. "Mr. Cash carries the potential of being a launching pad to organic growth by Cardtronics in Canada. Given the many marketplace similarities and proximity between the United States and Canada, we anticipate Cardtronics' business model will translate well across the border, with operational synergies expected."