The Brink’s Company (NYSE: BCO), the global leader in total cash management, route-based secure logistics and payment solutions, today announced its acquisition of PAI, Inc., the largest privately-held provider of ATM services in the U.S., for $213 million.
On a current full-year basis, PAI is expected to generate revenue of approximately $320 million and adjusted EBITDA of approximately $30 million. Given the acquisition’s closing date of April 1, PAI is expected to add approximately $240 million of revenue and $22 million of adjusted EBITDA to the company’s 2021 results and is expected to be accretive this year. Based in its new headquarters in Dallas, Texas, PAI employs 225 people across three major U.S. locations and another 12 field locations. The acquisition was financed using available cash and the company’s existing credit facility.
PAI offers a full range of managed services and tools for ATM owner-operators and PAI-owned ATMs, including its SaaS-based technology platform (AMP+), which maximizes ATM network performance and provides real-time visibility. PAI’s field services are built around its VTS (Vantage Technical Services) cash management and maintenance solution for ATM devices. Core services include remote device management, transaction processing, bank sponsorship, technology updates and product development. PAI maintains its own software development and services team in Billings, Montana.
A primary goal of Brink’s Strategy 2.3 is to offer ATM solutions integrated with other Brink’s solutions to provide complete, end-to-end cash management. PAI provides Brink’s with a platform of proprietary ATM services and more than 100,000 ATM service locations in the U.S., accelerating its execution of Strategy 2.3 initiatives in North America. In Europe, Brink’s has entered into agreements to take full ownership and provide managed services to financial institutions for more than 11,000 ATMs. With PAI’s capabilities, Brink’s will offer a more complete and technology-rich range of bundled ATM services to U.S. retailers, banks and credit unions through multi-year service contracts that generate recurring revenue streams.
Doug Pertz, president and CEO of Brink’s, said: “Strategy 2.3 is all about delivering digital solutions that make full-service ATM management and outsourcing easier and more efficient for retailers, financial institutions and consumers. PAI brings a strong management team led by David Dove, robust technology and a scalable, asset-light business model that complements our existing capabilities.
“With PAI’s proprietary technology, Brink’s is now uniquely positioned to offer U.S. customers a complete range of ATM services, including full-service outsourcing, which increases the value of their ATM networks. In addition, PAI currently offers Bitcoin purchasing at a select number of ATM locations.
“With PAI, Brink’s now offers total cash management solutions across the cash ecosystem. In addition, the acquisition provides cross-selling opportunities for PAI and Brink’s. The acquisition of PAI demonstrates our strong commitment to transforming Brink’s by offering comprehensive and innovative solutions that connect cash management to the digital economy.
“We expect significant revenue synergies and some operational cost synergies from the acquisition over the next several years, and look forward to further discussing PAI’s business and strategy when we release first-quarter earnings.”
David Dove, CEO of PAI, said: “We are exceptionally happy to join Brink’s and look forward to accelerating its execution of Strategy 2.3 by building additional recurring and transaction-based revenue streams in the U.S. Our mission is to make the management of ATMs easy and efficient, and by extension, provide a reliable way to keep cash within arm’s reach for consumers. We see this as critically important to the U.S. economy given the continued increase of cash in circulation. By way of example, in the first quarter, cash transactions from our fleet of 100,000 ATMs increased more than 15% on a ‘same store’ basis and more than 30% organically versus the year-ago quarter. In addition, total cash dispensed from our fleet increased more than 30% on a ‘same store’ basis and more than 50% organically versus the year-ago quarter. We expect our business platform, led by ATM portfolio management technology and VTS solutions, to scale nicely across the Brink’s footprint. Our management team looks forward to making a substantial contribution to the growth and transformation of Brink’s.”