Cardtronics, Inc. (Nasdaq: CATM), the world’s largest retail ATM owner / operator, completed its acquisition of Columbus Data Services, LLC on July 1.
Founded in 1999 and based in Dallas, Texas, CDS is a leading independent processor of ATM and payment card transactions, providing leading-edge solutions to ATM sales and service organizations and financial institutions. CDS will operate as a separate division of Cardtronics and will continue to be led by the current management team.
The acquisition of CDS adds a dedicated, purpose-built technology platform for servicing ATM deployers that address independent retail locations. CDS currently services over 90,000 ATM terminals for bank and non-bank ATM deployers and has a growing base of financial institution customers for card processing services.
The premier mobile and online management technology offered by CDS gives its customers powerful self-service tools to manage their ATM portfolios efficiently and in real-time. Its robust technology infrastructure and direct connections to all major U.S. debit and credit payment networks provides a highly scalable platform for growth.
Cardtronics Chief Executive Officer Steve Rathgaber said: “CDS has earned a reputation for technology, execution and service excellence and we are thrilled to have the CDS team join Cardtronics. The company’s presence in processing ATMs in independent retail locations is highly complementary with Cardtronics’ strength in the larger chain retail market. We look forward to bringing Cardtronics’ deeper resources, extensive distribution channels and differentiated ATM product set to CDS to accelerate its growth and provide greater value to its customers.”
The aggregate purchase price is approximately $80 million, subject to customary closing adjustments; Cardtronics funded the acquisition with borrowings under its credit facility. The acquisition will be slightly accretive to 2015 earnings and more accretive to 2016 earnings. Cardtronics will provide updated fiscal 2015 financial guidance in conjunction with its upcoming second quarter earnings announcement.