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Airis takes ATM Exchange brand
August 6, 2007 - Tracy Kitten
Last week, new market entrant Airis ATM Technologies of Cincinnati announced its acquisition of ATM Exchange Inc. from Post Browning Inc. for an undisclosed amount. The acquisition is just one of many occurring on a daily basis in the ATM world, yet another bit of evidence that the industry once characterized by ownership stability is at a turning point.
Dave Parlin sold ATM Plus and ATM Exchange to Post Browning after founding the companies more than 20 years ago. He found a niche in ATM servicing and repair, and built a strong name for ATM Exchange through his ATM-refurbishing business.
Market changes, such as increasing regulatory demands, have taken their toll on long-time players. And the industry has begun to see more consolidation and international expansion.
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That's where entrepreneurs like Joseph Abbo come in.
Abbo, who comes to the table with global experience from NCR Corp. and 7-Eleven Inc., is the president of Airis, a company he founded and incorporated about six months ago for the purpose of buying ATM Exchange.
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"The industry has certainly moved on and has grown to an international scope in its breadth, which requires a new perspective," Abbo said. "Acquisition is part of this industry."
Abbo says he plans to take ATM Exchange, which will now operate as Airis ATM Technologies, to a new level, doubling the company's parts business over the next 12 to 18 months. To do that, he is focusing on Asia, namely India and China.
"I think we have a lot of room for growth there," Abbo said. "I think China and India are where the U.S. was 15 to 18 years ago."
To help his international effort, Abbo has brought on Tom Riley, a founder of Project First, a partner affiliated with EFT Group for the distribution of China-based GRG Banking Equipment Co. Ltd.'s ATMs in the United States. Riley's international experience, in addition to his relationship with GRG and other vendors, supports the company's international-growth strategy.
Riley, vice president of sales and marketing for Airis, said the company is exploring complementary business models, such as kiosk refurbishing and sales, as well as the sale of enclosures.
"We're going to remain strategic and opportunistic," Riley said. "We're coming in with a clean slate."
Abbo said all of ATM Exchange's employees will stay with Airis, which currently has 16 employees. The company will continue to offer bank equipment depot repair for financial institutions, self-maintainers and outside-servicing companies, including Post Browning; the sale of new and refurbished ATMs; and the sale and resale of ATM equipment parts.
Post Browning, which retained ATM Plus in the deal, will provide ATM servicing. Airis will not compete with the Post Browning business, Abbo said.
For Post Browning, which provides interior branch design, construction and management services as well as FI technical support and banking-equipment placement, the ATM Plus buy made sense. Post Browning also is an NCR authorized sales and service provider. Keeping ATM Exchange was never part of Post Browning's plans, said Kevin Sheridan, executive vice president of Post. To do so would have created a conflict with the NCR side of Post's business.
Sheridan said "the acquisition adds scope and scale to our operations."
Sheridan estimates that the ATM Plus deal added approximately 1,000 branches and between 300 and 400 FI customers to Post Browning's roster of clients. Since the acquisition, Post Browning has strengthened its presence in Indiana; western West Virginia; Columbus, Ohio; and Cleveland.
Post Browning also holds FI accounts in Kentucky, Illinois and Michigan, Sheridan said.
The deal is expected to increase Post Browning's annual revenue by 40 percent from 2007 to 2008.
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