HOUSTON - Cardtronics, the nation's largest independent owner and operator of ATMs, has received a $75 million investment by TA Associates, a Boston-based private equity and buyout firm.
Michael Wilson and Roger Kafker, both managing directors at TA Associates, will serve on Cardtronics' board of directors. Wilson touted Cardtronics' "impressive organic growth and acquisition strategy."
He added, "With high quality locations under long-term contracts, we believe that they are well positioned to continue their success."
Beginning in the spring of 2001, Cardtronics acquired eight ATM portfolios in less than three years, growing its ATM network to some 12,000 machines. It more than doubled that number last June with its largest acquisition yet, of E*Trade Access' ATM business.
The firm's 25,000 ATMs are found in locations such as A&P, Albertsons, Amerada Hess, Barnes & Noble College Bookstores, ChevronTexaco, Costco, CVS/pharmacy, Duane Reade, ExxonMobil, Kroger, Sunoco, Target and Walgreens.
According to a news release, Cardtronics' revenues grew from $45 million in 2001 to $195 million in 2004.
TA Associates joins The CapStreet Group, which has been an investor in Cardtronics since 2001.
It is not clear whether the new investment will affect Cardtronics' plans for an intial public offering, announced last March. Cardtronics opened a $180 million credit facility in July and used approximately $136 million of it to fund the E*Trade acquisition and repay existing debt.
Goodwin Procter LLP served as legal counsel for TA Associates. Vinson & Elkins provided legal counsel to Cardtronics. Cardtronics was advised by Credit Suisse First Boston.
