SCOTTSDALE, Ariz. - eFunds Corporation announced it will sell its ATM portfolio to TRM Corporation for $150 million in cash.
According to a news release, the deal includes approximately 17,000 ATM machines under merchant contracts located throughout the U.S. and Canada, including machines owned and leased by eFunds.
eFunds is a leading provider of risk management, electronic payments, ATM and global outsourcing solutions. TRM Corporation is a global consumer services company that provides ATM and photocopying services in high-traffic convenience retail environments.
The two companies also entered into a five-year contract under which eFunds will provide ATM driving, processing and management services to the combined network of approximately 21,800 ATMs located throughout North America and the UK, making it the largest managed-services contract in the industry.
"Selling our ATM deployment business and expanding our management services operations is part of eFunds strategy to focus on higher growth, higher margin opportunities, while augmenting our global footprint in our core outsourcing, processing and risk management businesses," said Paul F. Walsh, Chairman and CEO of eFunds. "The eFunds-TRM relationship is consistent with our efforts to develop strategic alliances with value-added partners, such as TRM, serving specific segments of the market."
TRM Corporation President and CEO Kenneth L. Tepper added, "We believe eFunds' ATM portfolio can be further leveraged through TRM's core competencies, which include ATM deployment, field services and sales support, and our customers, employees and shareholders will realize greater value as a result of this important acquisition."
The transaction, which is subject to regulatory approvals and other closing conditions, is expected to close by the end of 2004.
