Atlanta’s NCR has won a bidding war to acquire the world’s largest non-bank operator of ATMs.
NCR agreed to pay about $2.5 billion in cash and assumed debt to acquire Houston-based Cardtronics, according to a news release. The price is unchanged from NCR’s original offer of $39 per share. The deal is expected to close by the middle of this year.
NCR outbid a partnership of two investment funds, Apollo Global Management and Hudson Executive Capital. Because Cardtronics previously had reached an agreement to sell to that partnership, it will pay a $32.6 million breakup fee.
Apollo is majority-owner of Cox Media Group, which includes WSB-TV/Channel 2 Action News. Cox Enterprises, owner of The Atlanta Journal-Constitution, owns a minority stake in Cox Media.
With the acquisition, NCR will add 285,000 ATMs to its network. Financial technology consultant Richard Crone said he expects NCR to replace the Cardtronics’ ATMs that were made by rivals like Diebold Nixdorf and Hyosung with its own machines.
The acquisition allows NCR to diversify, as well, because Cardtronics also services ATMs. NCR will combine its payments business with Cardtronics’ Allpoint ATM network.
The deal “further shifts NCR’s revenue mix to software, services and recurring revenue,” said NCR CEO Michael Hayford.
ATMs have become crucial during the pandemic as banks and credit unions have closed branches.
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